April 2025 Market Review & Commentary

We hope this finds you well. Spring is in full swing, and in our household, this marks the beginning of "golf" season for Channing. Our weekends are now filled with trips throughout the DMV for local two-day tournaments. Kim and I have grown to love the 5 hours spent outdoors watching Channing play a sport he's truly passionate about, and we certainly enjoy achieving our step goals for the day. From our conversations during appointments, I know many of you have a daily or weekly walking routine to make the most of these beautiful days. With how busy life is right now, we hope you continue to enjoy the outdoor moments as much as we do.

 Market Update:

Just as we relish taking steps on the golf course, the markets took their initial steps into April, but unfortunately, that first step was like stepping off a cliff. Stocks fell in early April after the White House introduced extensive tariffs, with the S&P 500 dropping nearly -12% over two trading days in the first week of the month. However, after the administration delayed tariffs for 90 days and trade tensions slightly eased, the S&P 500 recovered to end the month with a loss of just under -1.00%. Despite April's challenges, the year-to-date return for the S&P 500 stands at -5.31% , which seems relatively decent when considering the Nasdaq is at -9.65% for the year. As the data clearly indicate, major markets and investors are seeking clarity on the future direction of trade policy.  

In April, interest rates were volatile as the market dealt with tariff headlines and economic uncertainty, but they ultimately ended the month unchanged, with Treasury and corporate bonds remaining flat. At the sector level, Energy led the decline, finishing the month down -13.9%, along with the Healthcare Sector -3.97%, while the Technology Sector offered some optimism with a rise of +1.66%. Beyond the stock and bond markets, gold reached a record high, and the U.S. dollar weakened due to concerns about the direction of U.S. policymaking.

  As I mentioned in last month’s update, despite the uncertainties we face, the robustness of our economy provides confidence that the repricing and associated volatility aren't due to any fundamental issues, but rather stem from policy uncertainty affecting sentiment. We will closely monitor economic indicators, including the release of the CPI data on May 13th, to determine if tariffs are influencing inflation rates. If the economy remains relatively strong, it will allow more time for trade policies to be clarified.