Washington headlines drive volatility, @SecScottBessent comments on global trade, and results continue to emerge from Q1 earnings season. @MReinking details these developments and more on this week’s Market Storylines.
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The stock market ended the week on a positive note, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closing higher. This came as a relief after a turbulent week marked by sharp fluctuations due to President Donald Trump’s tariff policies. The temporary 90-day pause on higher tariffs has led to cautious optimism among investors.
Stocks set for weekly gains as the U.S. seeks better trade terms with China and India. @KristenScholer has more in the Market Update. pic.twitter.com/zXKI5XoUSV
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However, China responded by increasing tariffs on US goods to 125%, following a US hike to 145% on certain Chinese imports. This escalation caused the value of the US dollar to decline to a three-year low. Business owners are already feeling the impact of the increased tariffs.
#WATCH | "Any day when the President isn't commenting on tariffs is a good day for markets," says Ed Yardeni, analyzing US stock market moves amid trade war uncertainty.
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Jenny Ngo, co-owner of Telescope Coffee in San Francisco, is considering raising prices due to increased costs of coffee beans and iced coffee cups. Jorge Prudencio of Bread Bite Bakery in Washington DC also plans to increase prices to break even.
Cautious optimism amid tariff hikes
Stocks To Watch | 📊Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket #Q4FY25 #Q4FY25Results pic.twitter.com/FBNX5zl7qd
— ET NOW (@ETNOWlive) April 28, 2025
The majority of Americans are more vulnerable to stock market swings than citizens in other countries, as around 61% have money invested in the stock market through accounts like 401(k)s and IRAs. These investment vehicles are sensitive to market volatility, and early withdrawals incur steep penalties. In China, public sentiment remains largely optimistic despite the higher tariffs, with citizens expressing confidence in their country’s economic resilience.
Russia is also closely monitoring the situation and is prepared to take measures to mitigate any negative effects. The recent tariff hikes stem from President Trump’s belief that the US imports more goods than it exports, which he considers unfair. While Trump argues that tariffs will bring jobs back to the US, most economists contend that trade barriers are detrimental to economic growth.
As the effects of the tariffs continue to unfold, investors and business owners brace for more volatility. The long-term impact of these policies on the global economy remains uncertain, keeping markets on edge.