The Most Volatile Week Since 2020: Day-by-Day Market Recap
Market Recap for the Week of April 13, 2025
Each day last week felt like an entire week’s worth of market activity, with a constant stream of significant news and extreme daily market swings. Because of this, I’ve put together a day-by-day recap. This will be a longer-than-usual weekly update, but last week was exceptional—the most volatility we've seen since 2020.
Monday:
Heading into the week, no material progress had been made on the tariff issue over the weekend. International markets reacted poorly Sunday night—the Japanese Nikkei 225 Index fell 7.83%. The S&P 500 opened Monday down about 3%, but U.S. stocks then skyrocketed, gaining roughly 7% in just 30 minutes. This rally followed a rumor that reciprocal tariffs would be delayed for 90 days. However, after the White House denied these rumors, markets fell back into negative territory—clear evidence that the market is being completely driven by tariff news. About an hour later, President Trump announced a potential 50% additional tariff on China if they moved forward with their 34% tariff on the U.S. Stocks ultimately ended the day slightly negative (down ~0.25%), depending on the index.
Tuesday:
The market opened strongly, with the S&P 500 up 3.5% from Monday’s close. However, gains steadily eroded throughout the day. Just past the midpoint of the session, the index dipped into negative territory. This reversal was likely triggered by confirmation that a near-100% tariff on China would go into effect at midnight. The final hour of trading was particularly weak, with the S&P 500 dipping below -2% before ending the day down about -1.5%.
Wednesday:
Volatility continued, with the S&P 500 swinging between positive and negative territory early in the session. Later in the day, all major U.S. stock indexes surged, with the NASDAQ Composite climbing as much as 8%. The catalyst was news from the White House that reciprocal tariffs on certain countries would be paused for 90 days. However, all tariffs on China would remain in place. Interestingly, this confirmed Monday’s rumor that the administration had initially denied.
Thursday:
The S&P 500 opened about 2% below Wednesday’s close. A few hours into trading, it had drifted even lower—down around 4%. After moving sideways for much of the session, the index closed the day down approximately 3.5%.
Friday:
Markets ended the week on a more positive note, with the S&P 500 gaining nearly 2%. After such a wildly volatile week, the index now sits about 5% below its “liberation day” level. However, the tariff issue is far from resolved.
To summarize: the U.S. has now imposed a blanket 10% tariff on all countries except Mexico and Canada. Tariffs on China have been raised to 145%. Meanwhile, higher reciprocal tariffs on other countries are still on the table—they’ve merely been paused for 90 days. As this situation continues to unfold, more volatility is likely in the months ahead. Bottom line: expect sharp market moves in either direction as the president adjusts his tariff strategy.
Despite everything that’s happened, the year hasn’t been too negative for a globally diversified moderate investor. The Morningstar Moderate Target Risk benchmark is down only about 2% year-to-date. If recent volatility has been difficult to handle, now may be a good time for investors to reassess their risk tolerance.
“Markets lived and died by tariff headlines last week—the sharpest swings since 2020 remind us why risk tolerance matters”
Chart of The Week
This week’s chart shows the historical price movement of the U.S. Dollar Index (DXY), which measures the value of the U.S. dollar relative to other major currencies. When the index rises, it indicates a strengthening dollar—meaning it becomes more valuable relative to foreign currencies.
Practically speaking, a stronger dollar benefits U.S. travelers abroad—they’ll get more “bang for their buck” as one dollar buys more in foreign currency, allowing them to purchase more overseas goods. However, since the beginning of 2025, the opposite has been happening: the dollar has weakened.
While a weaker dollar may be unfavorable for Americans traveling internationally, it benefits U.S. investors holding foreign stocks. For example, if I own stock in a European auto company, I essentially own a piece of its foreign-based assets (factories, equipment, etc.). These assets are priced in foreign currency, so as the dollar weakens, those foreign currencies gain value relative to the dollar—meaning the value of my foreign-held assets rises in dollar terms.
This dynamic underscores the importance of international diversification. It's also a key reason why international markets are outperforming U.S. markets by about 10% year-to-date..
The commentary in this blog is for informational purposes only and should not be taken as personalized investment advice
Source: FactSet, J.P. Morgan Asset Management; (Left) ICE; (Top right) BEA; (Bottom right) BIS.
Currencies in the DXY Index are: British pound, Canadian dollar, euro, Japanese yen, Swedish krona and Swiss franc. Interest rate differential is the difference between the 10-year U.S. Treasury yield and a basket of the 10-year yields of each major trading partner (Australia, Canada, Eurozone, Japan, Sweden, Switzerland and UK). Weights in the basket are calculated using the 10-year average of total government bonds outstanding in each region.
Guide to the Markets – U.S. Data are as of April 10, 2025.
