Market Volatility Is Back—Here’s What Investors Should Watch

2025-04-25 Cash Market Commentary

After a relatively calm stretch in early 2025, market volatility has returned to the markets with force.

Since April 2nd—Liberation Day in the U.S.—the S&P 500 has posted daily moves of over 2% in either direction on half of all trading days. For context, the average annual return for the S&P 500 is around 8%, making these single-day swings particularly noteworthy. What’s more striking is that only one of those volatile days ended on a positive note—following a temporary pause on tariff discussions announced by former President Trump.

As of April 21st, the S&P 500 is down close to 10%, with mid-cap and small-cap stocks lagging even further behind. In contrast, international equities and traditionally defensive assets like gold and high-quality bonds have seen inflows. Investors appear to be seeking stability amid economic and policy uncertainty.

Market Volatility April 2025

A key theme in this month’s Market Monitor, prepared by Alphastar Capital Management CIO Tony Parish, is that diversification has become more important than ever. With the CBOE Volatility Index (VIX) still hovering around 30, investors are facing a market climate shaped by not only economic fundamentals, but also headlines and political risk—such as recent remarks about potential changes at the Federal Reserve.

None of this is about making market predictions. Instead, it’s about recognizing how thoughtful asset allocation and risk management help position portfolios to weather unpredictable conditions. In environments like this, staying grounded in your long-term objectives can help reduce the temptation to react emotionally to short-term noise.

Whether you’re a seasoned investor or simply trying to stay informed, it’s crucial to understand the forces shaping today’s market dynamics.

📩 Want to dive deeper into the data and insights?
Download the full April 21, 2025 Market Monitor PDF: Market Volatility April 2025 – below for detailed charts, commentary, and performance analysis.

CLICK HERE TO READ FULL MARKET COMMENTARY

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