WEEKLY MARKET RECAP – APRIL 17, 2025

Tariff concerns continued to cast a shadow over earnings season, preventing stocks from extending the prior week’s strong rally. The S&P 500 slipped about 1.5%, while the Dow and NASDAQ each lost roughly 2.6% during a shortened trading week due to the Good Friday holiday.

As trade tensions remained elevated, pressure mounted on the U.S. dollar’s role as the dominant global reserve currency. The dollar declined for the sixth time in seven weeks and on Thursday hit a three-year low, more than 8% below where it ended 2024.

Federal Reserve Chair Jerome Powell signaled a cautious stance on monetary policy, saying the Fed would “wait for greater clarity” before making any rate changes. He warned that higher tariffs will likely bring “higher inflation and slower growth,” raising the risk of a difficult balancing act between supporting employment and keeping inflation in check.

While small-cap stocks have trailed large caps significantly this year, they bucked the trend this week. The Russell 2000 Index rose more than 1%, even as large-cap indexes posted losses.

Gold prices continued their strong run, climbing for the sixth time in seven weeks. The metal broke through the $3,300-per-ounce mark for the first time, with prices reaching around $3,335 on Friday—up over 25% year to date.

Despite recent dips in consumer sentiment, U.S. retail sales beat expectations in March, rising 1.4% from the previous month. Auto sales accounted for much of the increase, though core sales excluding autos were also stronger than anticipated.

In Europe, the European Central Bank lowered interest rates for the seventh consecutive policy meeting, responding to sluggish economic growth. The move comes as the region boosts spending on infrastructure and defense while grappling with growing tariff pressures.

China’s economy posted robust first-quarter growth, expanding at an annual rate of 5.4%—surpassing forecasts for the second quarter in a row. March data also came in strong, with retail sales up 5.9% and industrial production jumping 7.7%, both exceeding economists’ expectations.