In Markets "In a Nutshell"

Markets “In a Nutshell” for April 21, 2025

Investment Week at a Glance

Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.7%, the S&P 500 was down 1.5%, and the NASDAQ fell 2.6%. Foreign stocks (MSCI EAFE) were up, rising 4.1%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.33%.  (Data source: Wall Street Journal)

Tariff Uncertainty Continues

Markets moved slightly lower on the shortened trading week as investors continued to try and price in tariffs and get a clearer outlook. The one thing the market never likes is uncertainty and that is what the issue is with tariffs currently. The most likely scenario currently is an average tariff of 10%-15% which would slightly impact inflation to move higher but only for the short term. The Fed outlined an inflation projection that shows inflation reaching its 2% target in 2027. Projections also show that a 10%-15% tariff would negatively affect GDP growth by 1.4%. These projections don’t account for any deregulation or possibly lower taxes which could boost GDP growth.

Fed Outlook

The next Fed meeting will take place the 1st week of May and markets currently do not have a rate cut priced in. Markets do however have 4 rate cuts priced in by the end of the year as inflation data has looked promising recently. President Trump continues to put pressure on Fed Chair Powell to cut rates and markets will pay close attention to see if Powell caves. Powell has roughly one more year as the chair of the Fed so there is some question as to how he’ll handle his last year. He will hope to avoid a recession on his way out the last 12 months while not causing a spike in inflation. Markets will keep a close eye on any indication he may give on the outlook of rates and the economy.

Netflix Earnings Beat

Netflix released earnings last week and beat on both revenue and earnings per share (EPS). Revenue jumped nearly 13% year-over-year as the company recently increased its subscription prices in January. Netflix has been a strong performer for 2025 as the stock is up over 10% despite overall markets being lower for the year. The company now has a market cap of over $425 billion and is up over 400% in the past 36 months. (CNBC)

Quiz:

How many days is the stock market closed for Holidays? (Scroll Down for Answer)

  1.    10
  2.    12
  3.    14
  4.    16

 

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

Answer:

1.   10. The stock market is closed for 10 Holidays, one of which was this past Friday in observance of Good Friday.

 

 

 

 

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