Financial insights for the week ending April 25, 2025
For the week ending April 25th, the S&P 500 rose by 4.59%, the NASDAQ was up 6.73%, and the Dow Jones Industrial Average rose by 2.48%.
This week, the stock market rallied sharply as signs of improving U.S.-China trade relations gave investors renewed hope, with the S&P 500 rising, helped also by strong tech earnings. China asked its domestic businesses for lists of critical American imports that cannot easily be sourced elsewhere, aiming to determine which products might be spared from its new 125% retaliatory tariffs. Meanwhile, the U.S. discussed the possibility of cutting tariffs on Chinese autos, although several upcoming tariff deadlines still hang over the market. (See below for a link to the list of current and proposed tariffs.) Speculation remains high about which measures will actually be implemented and which may be delayed, creating an increasingly uncertain environment for businesses. Tesla reported last week that its profits dropped 71% over the last three months, but Elon Musk's pledge to refocus on Tesla (and spend less time at the Department of Government Efficiency) helped the stock jump over 5%, despite ongoing demand plunge. Federal Reserve Chair Jay Powell, whose dual mandate is to keep inflation low and the labor market strong, ironically faced risks to his own job as President Trump lashed out at him last week for not cutting interest rates fast enough. However, this week Powell secured the backing of top administration officials, helping to calm leadership fears and contributing to the broader lift in markets.
Next week will be one of the most important of the quarter, with over 170 S&P 500 companies reporting earnings. Investors will be closely watching for signs of margin pressure (such as absorbing higher tariff costs), slowing demand, or resilient spending amid higher interest rates. On the economic side, critical reports like Q1 GDP (expected around 0.4%), PCE inflation, unemployment/employment data, consumer confidence, and manufacturing data will provide essential clues on the health of the economy. Meanwhile, the May 3rd deadline for new auto parts tariffs looms, and any developments in U.S.-China trade talks could swing market sentiment quickly. Additionally, new tariffs on de minimis goods from China (imports under $800 in value) are scheduled to go into effect on Friday, May 2nd. Overall, next week represents a major crossroads: strong earnings and cooling inflation could help extend the rally, while any disappointments could sharply reignite recession fears. Volatility is likely to rise as investors react to the flood of news, and sector leadership could shift rapidly depending on the tone of both earnings and macroeconomic data. Risk management and flexibility will be key as the market tries to balance hope with hard numbers.
This week's financial planning tip focuses on estate planning—specifically, beneficiary designations. Did you know that the beneficiaries listed on your insurance policies, investment accounts, and retirement plans override whatever is written in your will? That makes having the right people listed as beneficiaries critically important, especially since many of our largest assets are tucked away for retirement. Review your beneficiary designations across all your accounts—retirement plans, life insurance policies, and investment accounts. If they’re outdated, your assets could end up somewhere you didn’t intend. Life events like marriages, divorces, births, or deaths often create mismatches that people forget to update. A quick annual review helps ensure your financial plan protects the people you intend to, without leaving unexpected surprises behind. Tariff List
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.