Stocks declined in early April after the White House unveiled sweeping tariffs, with the S&P 500 falling over -10% in the first week.

On April 2nd, the Trump administration unveiled a sweeping set of tariffs. A baseline 10% tariff applies to all imports from all countries unless specific exemptions are granted. Additional “reciprocal tariffs” target approximately 60 countries deemed the worst offenders.

Stocks fell in the first quarter after two consecutive years of gains exceeding +20%. The year started strong, with the S&P 500 reaching a new all-time high in mid February. However, sentiment shifted late in February amid rising policy uncertainty in Washington, and the S&P 500 ended the quarter.

Stocks started 2025 trading higher but have since pulled back. The S&P 500 has declined more than -8% from its all-time high on February 19th.

Stocks traded lower in a late-month sell-off as sentiment weakened. The S&P 500’s decline erased most of its post-election gains, which had been driven by expectations for stronger growth and deregulation under the new administration.

In recent years, the Federal Reserve carried out one of the fastest rate-hiking campaigns in history to bring inflation down from a multi-decade high.