Making Sense: In Brief
The week ahead for markets and the economy
Monday, April 21, 2025
Blake: Financial markets were calmer last week, but moves in equity and bond markets were still substantial. We expect market volatility may persist while economic and policy uncertainty remain high.
This week, there are not many economic data releases or scheduled events for markets to look toward for insight on the market and economic outlook. Instead, we expect investors will still be closely following the latest news on the trade policy outlook.
On Wednesday, the Federal Reserve will release its periodic "Beige Book," which is a compilation of anecdotes and trends it's hearing from businesses across the country. Most of the information conveyed in this week's release will probably reflect sentiment and plans in place from before the April 2nd tariff announcement, but it'll still be valuable to hear what small- and medium-sized firms were thinking about as the outlook became more uncertain.
Throughout the week, we'll be following first quarter earnings season as more companies release results and commentary. We're particularly interested in how firms are guiding investors and how they plan to react to higher tariffs and the uncertainty that the tariffs are casting over the business and economic outlook.
Lastly, markets will be paying close attention to the latest tariff and trade policy developments, particularly around negotiations with large exporting countries like China and the European Union.
New tariff rates are substantially higher than the financial market consensus expected a few weeks ago, and investors are still grappling with this new reality and assessing to what extent they should plan for these policies to endure for the long haul.
So things to watch this week. One, the Federal Reserve's "Beige Book" on Wednesday. Two, first quarter earnings results and management commentary. And three, trade policy developments and negotiations throughout the week.
Authors
Brent Ciliano CFA | SVP, Chief Investment Officer
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Brent.Ciliano@FirstCitizens.com | 919-716-2650
Phillip Neuhart | SVP, Director of Market & Economic Research
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Phillip.Neuhart@FirstCitizens.com | 919-716-2403
Blake Taylor | VP, Market & Economic Research Analyst
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Blake.Taylor@FirstCitizens.com | 919-716-7964
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