April 15, 2025 Update

Last week in review and what is ahead – April 15, 2025

Last week, the markets were unpredictable with many comparisons to the volatility seen during 2020 and the global COVID pandemic. Despite the intra-day volatility and news, the S&P 500 ended up 5.7% for the week. The rollout and rollback of tariffs were the primary culprits for the large swings in the markets.

On April 2, the Trump Administration imposed tariffs on imports from about 90 nations for about 14 hours. China and the E.U. responded by imposing retaliatory tariffs on the United States, while other countries looked to negotiate. The bond market's reaction appears to have influenced the Administration's decision to implement a 90-day pause on reciprocal tariffs for all countries except China. The 10-year treasury yield experienced its biggest 3-day increase since 2001. This sharp movement contradicts the Administration's efforts to manage long-term borrowing costs on U.S. debt. This caused the U.S aggregate bond market index to end the week down 2.5%. The tariff situation remains fluid, and we anticipate this will be a pivotal economic discussion in the months ahead.

In addition to news around tariffs, the House and Senate have been busy working on a budget framework and the debt ceiling. Last week, House Republicans passed a $5 trillion budget framework. We are monitoring to see if they will extend or make permanent the tax cuts that are set to expire at the end of this year. On Thursday, we received information that prices rose less than expected in March with the latest Consumer Price Index (CPI) data.

Last week's market volatility offered a preview of potential reactions once tariff policies become more defined. The rapid shifts in equity and bond markets reinforce our long-standing advice against market timing and highlight the value of a disciplined investment approach.

In this environment of heightened uncertainty, maintaining well-balanced, diversified portfolios remains crucial for managing risk while positioning for long-term growth. Rather than reacting to short-term volatility, we continue to focus on fundamentals and your specific financial goals. If you or anyone you know is concerned about the markets or your investments, we are here to listen and provide perspective.

As spring arrives in full force, we hope you're enjoying the longer daylight hours and warmer weather with friends and family.

The Bond&Devick Wealth Partners Team