The early April losses were largely driven by fears that trade tariffs would hurt the U.S. economy—and recent data confirms those concerns.Ignacio Te
Quick overview
- New York’s major indexes closed mixed on Friday, reflecting a slowdown in economic activity and weaker job creation.
- April saw significant market volatility, with major indices losing up to 3.1% over the month.
- Trade tensions briefly eased after President Trump signed executive orders to mitigate the impact of new tariffs.
- The U.S. economy unexpectedly contracted by 0.3% in Q1 2025, with private sector job growth slowing to just 62,000 in April.
This Friday, New York’s major indexes closed mixed following the release of economic data showing a slowdown in activity and weaker-than-expected job creation.
On Wednesday, April 30, Wall Street closed with mixed results amid rising market volatility, as several reports pointed to a deceleration in the U.S. economy. Over the month, the main benchmarks lost as much as 3.1%.
SPX
April was a turbulent month for the New York Stock Exchange. The major indices gradually trimmed early losses, but initial panic over new U.S. tariffs led to sharp sell-offs, pushing the S&P 500 briefly into correction territory.
Index Performance on Wednesday:
- Dow Jones Industrial Average: +0.35% to 40,669.36 points
- S&P 500: –0.01% to 5,560.16 points
- Nasdaq Composite: –0.09% to 17,446.34 points
Monthly Performance:
- Dow Jones: –3.1%
- S&P 500: –1%
- Nasdaq Composite: –0.02%
Trade Tensions Ease—Briefly
Market sentiment had improved mid-month on hopes that the worst of the tariff announcements was behind. President Donald Trump signed two executive orders before Tuesday’s market close, aimed at softening the blow of upcoming 25% tariffs on auto parts. These included tax credits and tariff exemptions on certain materials.
The move came during Trump’s visit to Michigan, a key auto manufacturing hub, just ahead of the tariff implementation. Commerce Secretary Howard Lutnick also told CNBC the U.S. was close to finalizing a major trade agreement, although no deal has been announced yet.
U.S. Economy on Shaky Ground
The early April losses were largely driven by fears that trade tariffs would hurt the U.S. economy—and recent data confirms those concerns.
According to figures released Wednesday, the U.S. economy unexpectedly shrank by an annualized 0.3% in Q1 2025. This marked a sharp reversal from 2.4% growth in Q4 2024. Economists had expected a modest 0.2% expansion.
Additionally, private sector job growth slowed significantly. U.S. employers added just 62,000 jobs in April, according to the ADP National Employment Report—well below expectations and down from the downwardly revised 147,000 in March.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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