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Stock Market Volatility Becomes the Norm Amid Trade and Fed News

April 24, 2025 07:00 AM
Stock Market Volatility Becomes the Norm Amid Trade and Fed News

April 2025 is shaping up to be one of the most turbulent months for the stock market since the Covid crash in 2020, with wild swings becoming a daily experience for investors.

The market has been reacting strongly to a mix of political signals, including President Trump's softened approach toward the Federal Reserve and trade negotiations with China. This shift helped major indexes rally sharply after early-year lows, with the S&P 500, Nasdaq, and Dow all posting significant gains. Despite these rallies, investors remain on edge, as markets have fluctuated by at least 1% in most sessions this month, highlighting widespread uncertainty. Traders are closely monitoring tariff developments and Fed announcements, which are driving the sharp upward and downward movements seen across sectors and individual stocks.

Investors’ heightened sensitivity to any new information means that volatility will likely continue in the near term, especially around key economic reports. The market’s sharp ups and downs underscore the fragile sentiment prevailing on Wall Street and the challenge investors face in maintaining confidence amid geopolitical and monetary policy shifts.