End of Day Market Recap: Friday, March 21, 2025
Market Performance
U.S. stocks managed to pare earlier losses and finish the day with slight gains, snapping recent losing streaks for major indexes. The S&P 500 edged up 0.08% to 5,667.56, while the Dow Jones Industrial Average rose 0.08% to 41,985.35. The tech-heavy Nasdaq Composite outperformed, gaining 0.52% to close at 17,784.05.
This positive finish came after a volatile week, with the S&P 500 and Nasdaq breaking their four-week losing streaks, while the Dow ended a two-week decline. For the week, the S&P 500 gained 0.5%, the Nasdaq rose 0.17%, and the Dow climbed 1.2%, marking its largest weekly gain in two months.
Key Factors Influencing Markets
Tariff Concerns and Presidential Comments
Markets have been under pressure due to uncertainty surrounding the timing and size of tariffs. However, comments from President Donald Trump provided some relief to investors. Trump indicated there would be flexibility regarding tariffs and mentioned that his top trade official plans to speak with their Chinese counterpart next week. This news helped stocks recover from earlier losses.
Federal Reserve Policy
The Federal Reserve’s recent decision to keep interest rates steady and signal potential rate cuts this year continued to influence market sentiment. Chicago Federal Reserve President Austan Goolsbee and New York Fed President John Williams emphasized the need for more time to assess the impact of Trump’s policies on the economy, suggesting no rush to change monetary policy.
Major Stock Movements
Several notable companies saw significant stock price movements on Friday:
1. FedEx (FDX): Shares tumbled 6.45% after the company cut its full-year profit and revenue forecasts, citing weakness in the U.S. industrial economy.
2. Nike (NKE): The sportswear giant’s stock fell 5.46% following a bleak revenue outlook for the fourth quarter.
3. Boeing (BA): Shares climbed 3.06% after the company was awarded a contract to build the U.S. Air Force’s most sophisticated fighter jet, beating out rival Lockheed Martin.
4. Lockheed Martin (LMT): The defense contractor’s stock slumped 5.79% following the loss of the Air Force contract to Boeing.
5. Quantum Computing (QUBT): Shares initially fell but recovered to close down about 2% after reporting a widening fourth-quarter loss.
Upcoming Market Events
Investors should keep an eye on several important economic events in the coming week:
1. Prospective Plantings Reports: The U.S. Department of Agriculture will release reports on prospective plantings for corn, cotton, soy, and wheat for 2025 on Monday, March 24.
2. Consumer Confidence: France will report its consumer confidence data for March on Wednesday, March 26.
3. Inflation Data: The UK will release its inflation rate figures for February on Wednesday, March 26.
4. GDP Reports: Spain will publish its final GDP growth rate data for Q4 on Wednesday, March 26.
Market Outlook
As we move into the next week, market participants will continue to monitor developments in trade negotiations, particularly any updates on the planned tariffs. The upcoming earnings season, set to begin next month, will also be a focus for investors, with some companies already reducing their forecasts.
Michael Arone, chief investment strategist at State Street Global Advisors, noted ongoing concerns about U.S. economic growth and uncertainty surrounding monetary policy as factors contributing to market volatility.
With the “triple witching” event (the simultaneous expiry of quarterly derivatives contracts) having occurred on Friday, investors should be prepared for potential market volatility in the coming days as positions are adjusted.
As always, investors are advised to stay informed about global economic developments and maintain a diversified portfolio to navigate potential market fluctuations.
