What’s Going On in the Markets?

Stocks Suffer Biggest One-Day Wipeout in Value Since March 2020 is the headline of the Wall Street Journal at the end of the day on April 4, 2025. The day I started writing this note to you. I have been in this industry long enough to know better than to complete on that day. There was more to come. 

April 2^nd was “Liberation Day,” a term used by President Trump’s administration to describe the unveiling of their global tariff plan. This plan was announced after the stock and bond markets closed, so April 3^rd was those markets’ first response. The new tariff plan calls for a baseline duty of 10% on imports, other “reciprocal tariffs” in which the US matches another nation’s tariffs on our goods, and then additional tariffs on countries from which the President’s administration is determined to extract concessions. 

The global economic era is coming to a screeching halt. And the markets, as usual, are probably over-reacting and voicing their opinion; at the moment, they are down approximately 11% over three trading days.

The following is a summary of the April Trend Report by WealthShield (April 7, 2025):

What’s Going On in the Markets?Summary by Sound Financial Strategy Group, full paper by WealthShield

If you’ve been keeping an eye on the news or your investment accounts, you may have noticed the markets have been riding a bit of a rollercoaster lately. Don’t worry—there’s a reason for it, and it’s not all bad.

The Fed is Still the Star of the Show

The Federal Reserve (the folks who set interest rates) has hit the pause button for now. After months of raising rates to fight inflation, they’re watching closely to see if those hikes are finally cooling things down. Some investors think rate cuts might be on the horizon, but the Fed is being cautious, not wanting to jump the gun.

What’s Driving the Economy?

So far, the economy has been surprisingly or maybe mysteriously strong. Consumers are still spending, and the job market is holding up better than expected. That’s kept talk of a recession mostly in check for now. But underneath the surface, there are mixed signals: business investment is softening, and credit is tightening. Translation? The economy is still growing, but more slowly. Many “financial experts” are worried that new tariffs will make this slowing growth worse. 

The Market’s Mood Swings

In March, the S&P 500 had its first negative month in six. But that was after a pretty strong run. Some of the biggest tech companies (we’re talking the “Magnificent 7”) are still doing most of the heavy lifting, while many other stocks are struggling to keep up. That creates a kind of imbalance that investors are watching closely.

What Does This Mean for You?

Now’s a good time to:

• Review your goals: Are you investing for retirement, income, or something else?
• Stay diversified: Don’t put all your eggs in one basket—especially not just tech stocks.
• Stick to your plan: Markets go up and down, but a solid financial strategy helps you ride out the bumps.

At Sound Financial Strategy Group, we appreciate the trust you put into us, and we’re keeping a close eye on these trends and what they could mean for your financial future. As always, if you have questions or just want to talk through your plan, we’re here to help.

Material presented has been derived from sources considered to be reliable, but accuracy and completeness cannot be guaranteed. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. The opinions expressed herein are those of Sound Financial and are subject to change without notice. Sound Financial reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

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