Midday Market Roundup for Friday, April 25, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, April 25, 2025:

1. Consumer Sentiment Falls Sharply as Inflation and Tariff Worries Mount

Consumer sentiment in the U.S. dropped to its lowest level in over a year, with the University of Michigan’s final April index falling 8.4% from March and over 32% from a year ago. The report, cited by U.S. News & World Report, highlights widespread concerns about rising inflation and ongoing uncertainty over President Trump’s import tariffs. The expectations index steeply declined, reflecting pessimism about personal finances and business conditions. Economists are revising their U.S. GDP growth forecasts downward, with the IMF cutting its 2025 estimate to 1.8%, a potential significant blow to the global economy (U.S. News & World Report).

2. Global Markets Mixed as Trade Tensions Fluctuate

European and Asian stock markets logged a second consecutive week of gains, buoyed by hopes that the U.S. and China might de-escalate their trade war. The STOXX Europe 600 rose 0.27%, while Japan’s Nikkei climbed 1.8%. However, U.S. futures have turned lower since President Trump’s latest tariff comment, which injected fresh uncertainty. The dollar stabilized after a volatile period, and investors remain cautious as both sides send mixed signals about future trade negotiations (Reuters).

3. Tech Earnings Drive U.S. Market Volatility

Tech stocks remain focused after Alphabet (Google’s parent) reported better-than-expected earnings, sending its shares up nearly 5% and boosting other tech companies. However, Intel shares dropped almost 7% after issuing a cautious outlook for 2025. This week, the S&P 500 and Nasdaq have seen wide swings as investors digest corporate earnings alongside shifting trade headlines. Analysts at CNBC note that while strong tech earnings have supported markets, uncertainty around tariffs continues to limit upside potential (CNBC).

4. Bond and Commodity Markets Steady as Volatility Eases

Bond yields and commodity prices have steadied after recent swings. The 10-year U.S. Treasury yield hovered around 3.93%, with markets calming after tariff-driven volatility earlier in the month. Gold prices edged higher, nearing recent record highs, as investors remain cautious. Oil prices stabilized, with Brent crude up 1% to $66.80 a barrel, as OPEC+ considers possible output increases. The FHLB New York notes that financial conditions remain tighter than before the April 4 “tariff day,” but foreign investor participation in U.S. Treasury auctions has helped steady rates (FHLB New York).

Sources

• U.S. News & World Report: https://www.usnews.com/news/economy/articles/2025-04-25/consumers-unhappy-as-trump-nears-100-day-mark
• Reuters: https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-25/
• CNBC: https://www.cnbc.com/2025/04/24/stock-market-today-live-updates.html
• FHLB New York: https://www.fhlbny.com/financial-intelligence/msd-updates/msd042525

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