Weekly Market Update (April 27, 2025)

Market Hedwig
Apr 27
2 min read

HIGHLIGHTS

The de-escalating tariff has calmed the markets, while there are still uncertainties about the trade negotiations which are weighing heavily on the global economic outlook.

Earnings: Q1 earnings reported strong from major companies, boosting the market sentiment and driving the stock prices higher. 70% of S&P500 companies that have reported earnings have beaten expectations.

Central Bank: The discussion around the next move of European Central Bank (ECB) has shifted from a rate pause to a 50bps rate cut. Bank of Japan is expected to remain the rate unchanged this time, but is likely to hike in July’s meeting given the strong fundamentals.

Fed: Expectation of rate cut increased after the Fed officials said they would consider lowering the rate in June if the data is convincing, while also emphasizing that they would be patient and monitor the economic outlook closely.

MARKETS

Nasdaq	17,382.94	+6.73%
S&P 500	5,525.21	+4.59%
Dow	40,113.50	+2.48%
10-Year	4.27%	-6bps
Brent	67.00	-1.00%
DXY	99.59	+0.36%

*Data as of market close. 5-day change ending on Friday.

VIEW FROM THE STREET

Equity

UBS: US equities are attractive while volatility will likely persist in short term. We suggest phasing into the market in order the effectively position for medium and longer term upside while managing timing risk.

Goldman Sachs: Markets are forward-looking, earnings estimates do not have to be. Currently, consensus is strong based on economic assumptions that no longer hold. Tariffs are going to slow growth and boost inflation which undermines confidence.

Fixed Income

Standard Chartered: The rebound in bond yields was driven by the fears of unwinding in arbitrage trades. However, such worries are unlikely to be warranted in long term as Fed has an approach to deal with unexpected spikes in yields, just like 2020.

Goldman Sachs: The higher volatility leads to higher IG new issue concessions, which had recently entered negative territory. There have been only 4 bonds issued in the USD HY market in April, a significant drop from 39 in March.

Economy

UBS: Markets are factoring in a Trump and Fed put, expecting the tariffs will be cut from the current level over the remainder of the year and Fed will cut rate further. With uncertainty around monetary policy, economy and trade, volatility is likely to remain elevated.

Standard Chartered: The possibility of stagflation increased and complicated the Fed’s mandate. If inflation rises faster than unemployment, Fed is likely to hike rates.

KNOWLEDGE TRANSFER

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DISCLOSURE

This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.