U.S. Stock Market Summary for Friday, April 11, 2025

Major Indices:
U.S. stocks closed sharply higher on Friday, capping off the best weekly performance since 2023.

• S&P 500 rose 1.81% to 5,363.36
• Dow Jones Industrial Average climbed 1.56% to 40,212.71
• Nasdaq 100 advanced 1.89% to 18,690.05
• Russell 2000 gained 1.57% to 1,860.20

Market Overview:
Markets rallied strongly as selling pressure in long-term Treasuries and the U.S. dollar eased, providing relief across risk assets. This rebound came despite persistent concerns over geopolitical instability and the potential erosion of the U.S. dollar’s safe-haven status, fueled by President Trump’s volatile trade policies.

Investor sentiment was further buoyed by remarks from Boston Fed President Susan Collins, who stated the Fed stands ready to support market stability if financial conditions become disorderly. While she emphasized that markets are currently functioning well, her comments were perceived as a signal of potential intervention if needed.

Additionally, optimism around U.S.-China trade negotiations gained traction. Despite China raising tariffs on U.S. goods from 84% to 125%, the White House expressed confidence that China would eventually seek a deal—injecting fresh momentum into the rally.

Sector Highlights:

• Semiconductors showed a mixed reaction to China’s new tariff measures. U.S.-based manufacturers with domestic factories saw declines, while companies like Nvidia and AMD, which rely on overseas foundries, rallied as they were likely to avoid direct tariff exposure.
• Banks began the Q1 earnings season with mixed results. Executives repeatedly cited "uncertainty," "unknowns," and "disruption," underscoring the fragile market environment. JPMorgan CEO Jamie Dimon warned of "disorder" in the bond market that could warrant Fed intervention.

Economic Snapshot:

• The Producer Price Index (PPI) declined by 0.4% in March, adding to signs that inflationary pressures may be cooling.
• However, consumer sentiment deteriorated, with 1-year inflation expectations jumping to 6.7%, the highest level since 1981. This divergence highlighted a growing disconnect between actual price trends and consumer perceptions.

Expert Commentary:

• James St. Aubin (Ocean Park): “The Fed put is beginning to kick in—this could help ease investor anxiety, at least temporarily.”
• Adam Turnquist (LPL Financial): “Rollercoaster might not be a technical term, but it's the most accurate description of this week's price action.”
• Kritt Thomas (Touchstone Investments): “In the current foggy market, sentiment—not fundamentals—is driving moves.”
• Michael Kantrowitz (Piper Sandler): “Relief rallies in bear markets tend to be sharp. Policy news will steer this market.”
• Ajay Rajadhyaksha (Barclays): “Risk assets will struggle until the Treasury market stabilizes and returns to normal functioning.”

Conclusion:
Friday’s rally marked a significant turnaround for U.S. equities, closing out a volatile but positive week. Supportive Fed commentary, optimism over trade negotiations, and signs of cooling inflation drove risk appetite. However, elevated inflation expectations and ongoing geopolitical tensions suggest continued volatility. Investors will be watching corporate earnings and policy signals closely in the coming weeks.