A Volatile Week on the Stock Market: Tariff Shock and Inflation Expectations
Market News 7 APR
Last week was extremely tense for investors, as aggressive tariff rhetoric from the White House shook the U.S. stock market. The S&P 500 dropped nearly 11% over just two days, marking one of the steepest declines in history. Thursday saw a 4.93% loss, followed by another 5.85% on Friday. Year-to-date, the index is now down 14%.
Unsurprisingly, U.S. stock futures opened in the red on Sunday evening. Dow futures are down over 1,400 points, and S&P 500 and Nasdaq futures are losing 4%, indicating the market correction may continue. The trigger: the unexpected escalation in tariff policy. Analysts at Wedbush described the move as an “economic Armageddon” for the tech sector — even more damaging than the 2008 crisis or the dot-com crash.
With this high volatility as the backdrop, the upcoming week promises to be no less intense. Here are the key events that will shape market sentiment:
1. Consumer Price Index (CPI) — Thursday, 8:30 AM
This is the most important macroeconomic report of the week. Given persistently high inflation, the market will scrutinize this release — especially the core CPI, which excludes food and energy. A stronger-than-expected reading could delay any potential rate cuts, while a softer number may revive hopes for monetary easing. Technology, utilities, and real estate stocks are likely to react most sharply.
2. FOMC Meeting Minutes — Wednesday, 2:00 PM
The minutes from the latest Federal Reserve meeting will offer insights into the central bank’s current stance. Investors will be looking for clues about inflation concerns, the labor market, and the Fed’s readiness to cut rates. With the CPI report coming the very next day, this creates a two-day stretch where markets will be hyper-sensitive to monetary policy signals.
3. Producer Price Index (PPI) — Friday, 8:30 AM
Another key inflation indicator, the PPI will add depth to the picture painted by the CPI. Often a leading signal for future consumer price trends, this report will be closely watched — particularly core PPI, which reflects cost pressures in the supply chain. Industrial and materials sectors may react sharply if wholesale prices accelerate.
4. 10-Year Treasury Auction — Wednesday, 1:00 PM
The bond market will be watching this auction closely. Metrics like the bid-to-cover ratio and yield levels will reveal investor appetite for U.S. debt. Given recent volatility in yields and concerns over deficit spending, this event could significantly impact fixed income and equity markets. Sectors sensitive to interest rate changes — such as financials, tech, and utilities — will be most affected.
5. Weekly Jobless Claims — Thursday, 8:30 AM
This timely labor market indicator will help assess whether any emerging weaknesses are developing in employment. While claims have remained low historically, a sudden uptick could spark fears about economic momentum — especially since the data comes out alongside the CPI report. Labor-intensive companies may be particularly reactive to this release.
We are in for another week of high speeds, where every macroeconomic message can cause powerful fluctuations in quotes. The period of uncertainty and growing inflationary tension requires attention and flexibility, remember that companies have not become worse, the market is falling from macroeconomics. Continue to do your job and look for diamonds that will bring you money.