Stock Market Today: Stocks Surge to Close a Volatile Week
It was another day with a week's worth of both news and price action, but it ended on a strongly positive note.



Stocks gapped down and drifted lower after China announced retaliatory tariffs in its trade war with the U.S. Another set of encouraging inflation data found more purchase today, though, and the bond market showed signs of stabilizing after a historically volatile week. That was enough for stocks to wipe out losses and wind up with their best weekly rally since 2023.
Beijing boosted its total retaliatory levies on U.S. imports from 84% to 125%, effective April 12, describing the Trump administration's tariffs policy as a "joke."
As Bloomberg notes, "With tariffs at levels now set to halt most all trade between the world's biggest economies, the concern now is that the economic fight could spill into other areas of the relationship."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Treasury yields eased after rising earlier in the week at rates not seen in decades. The 10-year yield was on course for its biggest one-week jump since 2001, the 30-year for its largest one-week leap since 1987.
As we've written, the yield on the 10-year U.S. Treasury note is important – it's the basis for interest rates on mortgages and credit cards as well as corporate debt. The 30-year U.S. Treasury bond is the foundation of pension funds' retirement plans.
The Cboe Volatility Index (VIX) was as high as 44.64 on Friday and settled at 37.05 heading into the weekend. A normal range for the VIX is 12 to 20.
At the closing bell, the blue-chip Dow Jones Industrial Average surged 1.6% to 40,212. The broad-based S&P 500 Index bounced 1.8% to 5,363. And the tech-heavy Nasdaq Composite jumped 2.1% to 16,724.
No time to panic
Despite the volatility that comes with and in the aftermath of a stock market selloff, this is no time to panic.
"We remain in the early innings of this global trade regime change, and while the 90-day pause on reciprocal tariffs temporarily reversed the market selloff, it does prolong uncertainty," writes Darrell Cronk of the Wells Fargo Investment Institute.
Cronk explains that "economic data is cooling, company guidance has become cautious, and it's unclear if the Federal Reserve can immediately salvage weakening growth."
At the same time, Cronk sees "an opportunity for long-term investors to add exposure to high-quality" large-cap stocks and mid-cap stocks. The chief investment officer sees value in communication services, energy, financials and tech stocks, too.
Sentiment sours
Preliminary results from the University of Michigan Consumer Sentiment Survey for April reveal another significant decline. Interviews for the preliminary release took place between March 25 and April 8, the day before President Donald Trump announced his 90-day tariffs pause.
The headline index slid to 50.8 in April from a final reading of 57.0 in March. It's down 34.2% year over year. The two main components of the index were both down big: current economic conditions to 56.5 from 63.8 and consumer expectations to 47.2 from 52.6.
Year-ahead inflation expectations rose to 6.7% from 5.0%. This is the highest reading since 1981. Five-year-ahead inflation expectations increased to 4.4% from 4.1%.
The share of consumers expecting an increase in the rate of unemployment surged to 67%, the highest since the Great Recession. The "decline was … pervasive and unanimous across age, income, education, geographic region and political affiliation."
"U.S. consumer sentiment took a big dive in April," writes BMO Capital Markets senior economist Jennifer Lee. "Consumers are really expecting prices to keep rising … This is a problem."
Cool inflation news
The Bureau of Labor Statistics said the Producer Price Index (PPI) fell 0.4% in March, well below a consensus expectation for a 0.2% increase. Core goods excluding foods and energy rose 0.9%.
On a year-over-year (YoY) basis, the PPI slowed to 2.7% in March from 3.2% in February. Core PPI slowed to 3.3% from 3.5%.
"The March PPI report says next to nothing about the inflation outlook," observes Comerica Bank Chief Economist Bill Adams, "which depends overwhelmingly on tariffs." As Adams explains, "The hike in tariffs on Chinese imports offset the partial roll-back of tariffs on imports from other countries, leaving the average U.S. tariff rate about 25 percentage points higher than at the start of the year."
The economist concludes that "inflation will accelerate considerably if the tariffs stay in place." That would leave the Fed in a tough spot: "The Fed’s bar to rate cuts in a stagflationary shock is higher than in a normal growth scare that would lower both demand and prices."
"Uncharted territory" for banks
JPMorgan Chase (JPM, +4.0%) reported a 9% rise in first-quarter net income and earnings of $5.07 per share, well above a FactSet-compiled consensus estimate of $4.63. Revenue was $45.3 billion, also well above an estimate of $43.9 billion.
It's the biggest U.S. bank by assets, which makes JPM one of the most important financial stocks in the world. Investors, traders and speculators are particularly interested right now in CEO Jamie Dimon's and his team's forward-looking commentary.
"We are prepared for any environment," Dimon said in his bank's earnings release. "The most important thing is," he added, "the Western world stays together economically. Chief Financial Officer Jeremy Barnum emphasized "the banking system being a source of strength" in the present context.
J.P. Morgan Securities bank stock analysts provided the context in a recent note: "We are in uncharted territory. There is no historical precedent for the current situation where the existing framework has been upended by the president’s change in policies."
Related content
- 5 Stocks to Buy for a Trump Presidency
- The Best Industrial Stocks to Buy
- Markets Roller Coaster: Resist the Urge to Make Big Changes
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

David Dittman is the former managing editor and chief investment strategist of Utility Forecaster, which was named one of "10 investment newsletters to read besides Buffett's" in 2015. A graduate of the University of California, San Diego, and the Villanova University School of Law, and a former stockbroker, David has been working in financial media for more than 20 years.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?
Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?
Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.