Anna's Markets Recap

_{Just facts, you think for yourself}

Saturday, 5:23 AM

April 5, 2025

Good morning news friend! Here is a quick recap of what happened in the markets this week. 📰🌟

Economic & Market Overview

U.S. markets suffered a steep selloff this week. The Dow Jones Industrial Average fell nearly 8%, the S&P 500 lost about 9%, and the Nasdaq Composite plunged 10%​.

Stocks began the week on a positive note but reversed sharply after the U.S. announced sweeping new tariffs on trading partners late Wednesday​.

China retaliated on Friday with a 34% tariff on all U.S. imports​. These escalations in the trade war heightened recession fears, triggering a broad risk-off move by investors.

A better-than-expected jobs report on Friday morning provided only brief relief. U.S. nonfarm payrolls rose by 228,000 in March, topping forecasts​. This sign of a still-strong labor market initially lifted sentiment.

However, Federal Reserve Chair Jerome Powell noted rising risks of slower growth and higher inflation due to the new trade policies, but said the Fed is “well positioned to wait for greater clarity” before changing interest rates​.

The 10-year Treasury yield plunged to around 4.00%, its lowest level since early October, as investors sought safety in bonds.

Sources: Investopedia, Reuters, Reuters[2], Reuters[3], BEA.

Technology & Growth

High-growth technology stocks bore the brunt of the selloff. The tech-heavy Nasdaq entered a correction as investors dumped the previously high-flying “Magnificent Seven” names.

NVIDIA (NVDA) fell over 7%, and Tesla (TSLA) plunged about 10% on Friday alone​. Apple (AAPL) – which relies on Chinese manufacturing and sales – dropped 7% Friday after a 9% plunge Thursday​, reflecting concern over its exposure to the U.S.–China tariff battle.

Chipmaker Broadcom (AVGO) and Facebook parent Meta Platforms (META) each sank around 5%, while Amazon (AMZN) slid 4%.

In this risk-off environment, fundamental tailwinds like strong consumer demand or innovation milestones took a back seat to macro fears.

Consumer demand for Apple’s products remains healthy, and the company’s ecosystem strength buoys its outlook. AI and cloud computing remain key growth drivers for the likes of NVIDIA, Microsoft, Amazon, and Alphabet.

Tesla reported growth in vehicle deliveries in Q1 (a positive sign for EV demand), and Meta is seeing stable advertising business.

However, this week investors largely ignored these positives.

Sources: Investopedia, EconomicTimes, Reuters.

Financial Institutions

Banking and financial stocks also slid amid the market turmoil, as concerns about economic growth outweighed the benefit of higher interest rates.

Major bank shares like JPMorgan Chase (JPM) and Bank of America (BAC) each dropped more than 7% this week​.

Investors worry that an economic downturn could hurt loan demand and lead to rising credit defaults.

Yield curves remain inverted, and by Friday the 10-year yield’s steep decline signaled expectations that the Fed may eventually have to cut rates if growth falters​. This dynamic threatens to squeeze future bank profits.

Sources: Reuters, Reuters[2].

Consumer Staples & Healthcare

No major news from these sectors this week.

Energy & Industrial

U.S. crude oil (WTI) futures plunged about 6.9% on Friday to roughly $62.30 per barrel​, extending a steep slide from Thursday.

This collapse in oil prices came as OPEC+ producers signaled plans to increase output to capitalize on earlier high prices, which added more downward pressure.

Shares of oil giant Exxon Mobil (XOM) fell about 7% this week in tandem with the commodity. Exxon had been trading near multi-year highs thanks to strong profits from $70+ oil in prior months, but the sudden price reversal prompted investors to take profits.

There was a glimmer of potential relief: the slide in the 10-year Treasury yield to 4.0% by week’s end could eventually translate into slightly lower mortgage rates​.

The housing market activity remains cooler than a year ago – both new construction and existing home sales have been under pressure.

Sources: Investopedia, Reuters.

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Baked with love,

Anna Eisenberg ❤️