Markets Rebound on Tariff Policy Remake
April 14, 2025
Following another week of tariff-induced market volatility, equity and bond markets are opening the week on a positive note. Apple and other technology names are rising after the announcement late Friday that the punitive tariff levels on semiconductor equipment, smartphones and other electronic devices imported from China will be rolled back.1 President Trump suggested over the weekend that more details regarding the new tariff policies will be announced this week.
While equity market volatility is capturing most of the headlines, the Treasury bond market is also feeling the pain from possible trade wars. Last week’s meltdown, with long-term Treasury yields rising by nearly 50 basis points,2 almost certainly factored into the Trump administration’s decision to take a 90-day pause on the higher, reciprocal tariffs outside China.
Lost in the tariff news was cooler-than-expected inflation data last week in both the consumer price index (CPI) and producer price index (PPI) reports.3 In just one notable data point in last week’s inflation data, year-over-year core CPI moved below the 3% level for the first time in four years.4
This week’s economic calendar includes important data on the health of the U.S. consumer and the housing market. The March retail sales report will be released Wednesday with economists expecting a weather-related rebound following the disappointing January and February reports.5
Sources:
1Reuters – Trump spares smartphones, computers, other electronics from China tariffs; 4/13/25
2Morningstar – Treasury yields are surging despite market chaos. This isn't normal - and it worries Wall Street; 4/11/25
3CNN – Another inflation report underlines the strength of the US economy before Trump’s tariff chaos; 4/11/25
4CNBC – Inflation rate eases to 2.4% in March, lower than expected; core at 4-year low; 4/10/25
5MarketWatch – U.S. Economic Calendar; as of 4/14/25
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