The high volatility in the market was driven by headlines from Washington and rising bond yields.
News Analysis
US stocks were driven by rising Treasury bond yields this week and media headlines that sparked investors’ sentiment. All major averages recorded weekly profits thanks to two strong gatherings on April 9th and April 11th, led by gold producers and Big Tech.
The S&P 500 index closed at 5,363 on April 11, up 5.7% for the week. The Dow Jones industrial average went 4.95% to close at 40,212. The Nasdaq rose 7.29% to close the week at 16,724. And the Small-Cap Russell 2000 recorded a moderate profit of 1.82% to finish in 1860.
Among the top Gaines this week was Newmont Corporation and Goldfields, which increased by 24.42% and 23.17%, respectively, with Barrick Gold rising by 16.53%.
This ended the week at $3,254, just above 8% thanks to another jump in gold prices.
Yellow metal has recently held stable gatherings amid growing geopolitical uncertainty, supported by a decline in demand for safe hull assets.
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Another winning group for stocks was Big Technology. This has made the rating more appealing after a bargain hunt and a short cover after a sudden sale in the past few weeks. Nvidia, which led the tech sector losses in the past two weeks, has increased by 17.62% in a week, while Broadcom has increased by 24.37%, increasing its materials by 14.17%.
The substantial profit came amidst high volatility at each trading session throughout the week due to headlines and rising bond yields from Washington.
Wall Street opened a new week with another sale, extending the sentiment that promoted the historic plunge for the previous week, which boosted the main stock index into Bear’s territory.
A wave of negative media headlines over the weekend was added to the sentiment of bearish investors at the start of trade on Monday, driving market capitalization and a “sell everything” mentality.
It invited umpire hunters to help key equity indexes trade temporarily in positive territory. The Chicago Board Options Exchange Volatility Index fell from nearly 50 on Monday morning to around 42 years of age when closed.
“Monday has a history of higher than usual volatility, both in both negative and benefits,” James Demart, chief investment officer at Main Street Research, told the Epoch Times.
“Volatility often occurs after a period like last week, when uncertainty, fear and serious indiscriminate sales pressures have increased. In many cases, the “cooler head” takes priority over the weekend. This allows for more careful analysis.
Tuesday afternoon, headlines of the escalating tariff fight against China and the Treasury bond yield headline added to investors’ concerns over valuation of risky assets. The S&P 500 and the high-tech Nasdaq each gave up early profits to close with a loss of around 2%.
IHOS is a financial indicator that measures the difference in yields of US Treasury securities on par with US high yield (or “junk”) corporate bonds. Spreading is a sign of an increase in credit risk.
A photo of President Donald Trump is on a desk on the floor of the New York Stock Exchange (NYSE) at Opening Bell in New York City on April 7, 2025. AFP by Timothy A. Clary/Getty Images
By early afternoon, as bond yields were heading south again, news had been settled for another market reversal, with a 90-day tariff suspension hitting the wire.
The Dow Jones scored 3,000 points or 7.8%, the S&P 500 scored 9.5% (the most since 2008), and the Nasdaq finished in double digits.
“The market is sighing loudly at ease after President Trump announces a 90-day suspension of tariffs and a reduction in certain things,” SWBC’s chief investment officer Chris Brigaty told the Epoch Times. “The upward movement of the market is violent and talks about how badly the market is looking for clarity on the issue. The motivation behind President Trump’s trade responders to the negotiation table appears to be fruitful, a constructive development for the ongoing trade war.”
Market volatility returned on Thursday with an updated sale driven by escalating the tariff war with China. The Dow Jones fell by more than 1,000 points, while the Nasdaq went 4%.
“The stock market is taking breath away after an extraordinary rally on Wednesday. Investors are beginning to realize that even with a pause, there is still a trade war with China, and they don’t make the road clear between the two countries.” “It’s common to look at pullbacks after a big day. The market is trying to find a foothold a week after the whiplash.”
On April 7, 2025, an employee at the trading room at Nordea Market in Oslo, Norway. Ole Berg-Rusten/NTB/AFP via Getty Images
Ruggiello sees opportunities for long-term investors, especially among the many megacap technology names, among the recent market volatility.
“That could be positive as investors were raising questions about big technology extreme spending on AI a few months ago,” he said.
