Markets Slip as Fed Comments, Trade Risk Loom

Markets entered the third week of April on a more cautious note, with investors pulling back after a brief rebound earlier in the month. Trading was marked by uncertainty surrounding Federal Reserve policy direction and renewed headlines about global trade negotiations. While volatility has eased from March levels, sentiment remains fragile.

Many investors spent the week digesting mixed earnings reports and conflicting signals from policymakers. Comments from Fed Chair Jerome Powell about “remaining patient but data-dependent” reminded markets that rate cuts aren’t guaranteed, even as inflation continues to edge lower. Meanwhile, corporate results painted a divided picture — financials showed resilience, but consumer and industrial sectors hinted at slowing demand. The market’s current tone suggests investors are positioning more defensively heading into the latter half of April, seeking clarity before taking on new risk.