State of the Stock Market - April 29 2025

Published first at https://www.3minutebreakdowns.com US stocks gained about 5% last week and are now up about 14% from their low on April 7th. Naturally, the recovery in stocks has prompted speculation that the worst may be over. Treasury Secretary Scott Bessent happily reported that the Nasdaq 100 was now in positive territory for the month of April. But while stock markets are capable of climbing a wall of worry, it feels too premature to call the bottom. The biggest issue for investors is that the thing that got us into this mess, the tariffs, are still with us. 10% tariffs are still in place with most trading partners. And China tariffs are still a whopping 145%. Trump has indicated he will soften his stance and bring the tariffs down. But there’s still no evidence of him having any discussions with China. Meanwhile, Trump provided more proof at the weekend that tariffs (at least in some form) are here to stay. Posting on Truth Social he said that once tariffs cut in they might be used to eliminate income taxes. Of course, this idea has been debunked by economists who say the math simply doesn’t add up. the Council on Foreign Relations called the idea foolhardy and irresponsible.