Uncertainty and Volatility in Global Markets

On April 12, 2025, 9:35 AM

It isn’t just oil prices falling this morning, with U.S. and global markets under pressure this morning too.

Here’s an update on the current economic landscape:

U.S. Stock Market

Sharp Decline: U.S. stocks tumbled early on Thursday, with the S&P 500 down 2.5% and the Nasdaq Composite losing 3%. This follows a remarkable surge on Wednesday, where the S&P 500 rose 9.5%, and the Nasdaq surged over 12%.
Tariff Impact: The volatility is largely attributed to President Donald Trump’s recent tariff decisions. Despite a temporary suspension of some tariffs, existing and new tariffs continue to weigh on the economy.
Global Growth Concerns: Economists warn that the economic damage from tariffs is already done, with many predicting a recession in the U.S. and globally.

Inflation Drop: The U.S. inflation rate eased to 2.4% in March, down from previous levels. This decrease has been influenced by falling energy prices.
Interest Rate Tensions: There is growing tension between President Trump and Federal Reserve Chairman Jerome Powell over interest rates. Trump is pushing for rate cuts, while Powell remains cautious unless data warrants it.

European Stocks: European markets initially surged but later retreated, with the Stoxx Europe 600 index up 4.2% and other major indices showing similar trends.
China’s Response: China’s renminbi has weakened to its lowest level since 2007, following increased tariffs on Chinese goods.

Uncertainty and volatility remain the buzzwords around the world, even if Trump’s decision to pause some tariffs provided some relief on Wednesday.