Stocks bounced back in extremely volatile trading with the S&P 500 rallying 5.7%, its best weekly return since 2023. U.S. markets easily outpaced international stocks’ 0.8% gain, flipping the script after international markets have led year to date.
Interest rates climbed while the yield curve steepened with the 10-year yield closing Friday just below 4.50%, up about 0.50% on the week. President Trump cited higher yields as one of the reasons for the 90-day pause on reciprocal tariffs.
While much of the focus was on tariffs, key inflation data came in cooler than expected and survey data showed falling consumer sentiment.c
A look ahead
Trade negotiations will remain in the spotlight, but investors will also keep an eye on a host of economic data. The highlight will be March Retail Sales, a key barometer of the economy following last week’s softer inflation data.
Earnings season kicks off in earnest with 32 companies in the S&P 500 set to report Q1 results. Investors will pay close attention to any forward guidance companies provide.
