Stocks began this week on a downbeat note but reversed course after several policy announcements and earnings catalysts.

The Trump Administration secured a tariff-reduction deal with the U.K. over some products and reopened negotiations with China, easing trade tensions. Monetary policy also steadied markets: the Federal Reserve left the federal-funds rate unchanged at 4.25%, while its statement acknowledged risks of higher unemployment and higher inflation. Futures pricing (via the FedWatch tool) continued to show a significant probability of multiple rate cuts later in 2025, and upbeat corporate earnings helped major indexes close the week in positive territory.

Looking ahead, inflation data will dominate next week’s macro calendar. March’s consumer-price index rose 2.4% year over year—below forecasts and down from 2.8% in February—but analysts anticipate an upswing as new tariffs filter through key goods prices. Retail sales figures are also due; following one of the biggest monthly gains since 2023, consensus now calls for flat to slightly negative growth as households contend with higher costs. Housing indicators remain a potential bright spot: building permits and housing starts have been climbing on lower mortgage rates. Investors will also parse Federal Reserve Chair Jerome Powell’s scheduled speech for direction on the policy path.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.