Stock Market Update Tuesday April 8, 2025

Stock Market Update Tuesday April 8, 2025 Markets experienced another turbulent session marked by extreme intraday volatility. The S&P 500 surged 4% out of the gate, fueled by early buying momentum, before sharply reversing course in the afternoon, plunging as much as 3%. A modest late-day rebound trimmed some losses, but the benchmark index ultimately closed down 1.6%. The tech-heavy Nasdaq-100 (QQQ) declined 2.0%, while small-cap stocks bore the brunt of the selloff, with the Russell 2000 ETF (IWM) sliding 3.9%.

Fixed Income: Yields Extend Climb

In the bond market, Treasury yields continued to climb amid persistent inflationary concerns and hawkish rate expectations. The 10-year yield rose 11 basis points to 4.26%, while the 30-year yield added 13 basis points to settle at 4.71%. The iShares 20+ Year Treasury Bond ETF (TLT) closed at session lows, reflecting sustained downside pressure in long-duration bonds.

Commodities & Crypto: Mixed Signals

Crude oil prices weakened further, with WTI dipping below the $59 per barrel mark amid global demand concerns. Conversely, gold saw renewed safe-haven demand, rallying to $2,984 per ounce. In the digital asset space, Bitcoin slipped just under $77,000, while the CBOE Volatility Index (VIX) surged eight points to 55, highlighting elevated risk aversion across markets.

Tariff Freeze Signals Diplomatic Progress Notably, both the European Union and the United Kingdom refrained from raising tariffs. In a proactive move, the EU extended an offer of zero tariffs on autos and industrial goods, coupled with an openness to formal negotiations. This conciliatory stance represents a strategic diplomatic win for the United States, potentially improving export competitiveness and reducing cross-border friction.