Digest | 9 April 2025
- Edward von der Schmidt
- Apr 10
- 3 min read
Updated: 5 days ago
An about-face on so-called reciprocal tariffs precipitated a stunning turnaround in equity indices on Wednesday, though further trade war escalation vis-a-vis China and uncertainty about forthcoming bilateral negotiations continued to weigh on the outlook. The S&P 500 closed 9.5% higher even as oil's decline continued. Treasuries rallied through auction supply after another spike in yields had elicited reservations from President Trump himself and prompted broader concern about orderly market functioning. Lost amid the shuffle, the minutes from the March FOMC meeting revealed a Fed aware of labor market headwinds and growth outlook risks but focused on fighting inflation nonetheless.