The April Rollercoaster (Monthly Market Update April 2025)

CWM - MMU - April 2025Olivia Countiss

0:00

Countiss Wealth Management (CWM) - Monthly Market Update (MMU) - April 2025 - https://www.youtube.com/watch?v=_iGcICL9fwY

Summary April brought a few bumps in the market, but that’s expected on the path to long-term growth. Diversified portfolios continued to hold strong, reminding us that steady strategy and staying the course still work—even when headlines get noisy.

--

Monthly Market Update (April 2025)

Hey everyone. Welcome to the monthly market update. April was a reminder that volatility can come just as fast as it can go. We finished with the S&P 500 down only 0.7%, but it was a wild ride to get there.

The S&P 500 experienced significant swings through early 2025, reflecting investor reactions to rising inflation, trade tensions, and shifting rate expectations.

We started the month with a lot of momentum, and then came the headlines. The Trump administration announced tariffs against China and China retaliated swiftly.

Renewed trade tensions between the U.S. and China in April disrupted global markets and contributed to increased inflation expectations.

We've talked a lot in meetings, so some of you may have heard me say this, but with tariffs, you can make an argument for interest rates to go both up and down. During the month, we saw inflation and inflation concerns seem to tick a little bit higher. We also saw treasury yields peak during the middle of the month, so that would lead you to believe if there's a lot of inflation that interest rates would go up.

Treasury yields climbed sharply mid-April as investors adjusted to the likelihood of delayed rate cuts, then eased as uncertainty persisted.

Meanwhile, signs of economic cooling also emerged. Jobless claims ticked a little bit higher while investors sentiment ticked a little bit lower. This leads us to having the argument for interest rates being lowered. The key number that we're looking for here is the unemployment rate. If the unemployment rate goes up, we're gonna have an issue with interest rates being able to go down.

One notable development from the trade war, a weaker US dollar. That helped boost international equity performance even as global manufacturing wasn't as good. In terms of market leadership, we still had technology and consumer staples hold up well with AI enthusiasm and defensive earnings taking place.

The U.S. dollar weakened throughout the month, helping international equities but also reflecting global economic strain tied to trade disputes.

Small caps and energy struggled. Looking ahead, investors are recalibrating expectations. Rate cuts look like a late 2025 story. Unfortunately, with how sudden the tariffs were a lot of companies lack updated economic outlook leading to greater uncertainty. The longer this uncertainty lasts, the greater the damage is gonna be to the global economy.

April saw narrow market leadership with Technology and Consumer Staples outperforming, while Energy and Small Caps struggled amid volatility.

But here's the bright spot, this is when a diversified portfolio has the most value. April's turbulence was another reminder that the journey won't always be smooth, but the destination hasn't changed. As always, we appreciate your business, but we value your trust and I'll keep you posted.

April reminded investors to remain disciplined. Diversification, smart rebalancing, and a long-term mindset continue to be key strategies.

--

Countiss Wealth Management offers trusted financial guidance tailored to your unique goals. Our Monthly Market Updates help you stay informed on key economic trends, market volatility, and investment strategies. As a father/daughter advisor duo based in Flowood, Mississippi, we believe in the power of diversification, long-term planning, and personalized service. Let us help you build confidence in your financial future—no matter what the market brings.