In This Article:
April brought intense volatility to the U.S. stock market, largely driven by former President Donald Trump’s aggressive tariff measures. The most notable of these was the announcement of “Liberation Day” tariffs, which sent shockwaves through financial markets.
In just two days, the Dow Jones Industrial Average fell more than 4,000 points — a 9.5% plunge. The S&P 500 and the Nasdaq followed suit, with the Nasdaq entering bear market territory. Though markets have since recouped some losses on hints of trade de-escalation, uncertainty continues to linger.
Overall, the S&P 500 lost 1.8%, the Dow Jones retreated 3.7%, the Nasdaq Composite was off 0.9% and the Russell 2000 plunged about 4% in April.
Hints of Tariff Rollbacks and/or Deals Fuel Market Stabilization
The universal 10% import tariff, alongside country-specific levies — most notably the steep 145% tariff on Chinese imports — had a profound impact on market sentiment earlier in the month. The result was a swift sell-off, with major indices entering bear market territory.
However, recent developments signal potential relief. China is reportedly considering suspending its 125% tariffs on select U.S. products. However, Trump doubled down on the China tariffs, saying, “they deserve it.”
Meanwhile, President Trump rolled back auto tariffs following concerns raised by major automobile manufacturers. In another relief measure, companies already subject to tariffs on components and raw materials will be spared from the new steel and aluminum taxes targeting imports from Canada and Mexico. These conciliatory moves have helped lift investor confidence.
Strong Q1 Earnings, But Clouds Ahead
Roughly one-third of the way through the first-quarter earnings season, corporate results have largely exceeded expectations. According to early reports, the S&P 500 companies have delivered earnings 7% above forecasts and revenues 1% ahead of consensus. However, despite a strong start, there has been a dramatic reversal in expectations for the rest of 2025.
Losing ETF Areas in Focus
Against this backdrop, below we highlight a few losing exchange-traded fund (ETF) areas of April.
Energy – VanEck Oil Services ETF OIH – Down 20.2% in April
Oil prices had a downbeat month in April as global trade tensions weakened the demand outlook.United States Oil Fund LP USO lost 17.5% and United States Brent Oil Fund LP BNO retreated 16.7% in April. Brent crude is heading toward its largest monthly decline since 2021.