Last Week: March 10 - 16
3/18/25, 9:00 PM
Recent market activity is characterized by high volatility, driven by trade war concerns, economic uncertainty, fluctuating interest rates, company earnings, and the performance of the "Magnificent Seven," amidst a general trend towards defensive sectors and international equities, though Friday's rally offered temporary relief.
Volatile: The market experienced significant volatility, with a notable sell-off followed by a strong rally on Friday. There has been a trend of negative weeks, with the S&P 500 and Nasdaq experiencing their fourth consecutive week of losses.
Trade War Concerns: Escalating trade war tensions, particularly related to tariffs, are a major source of uncertainty and market disruption.
Economic Uncertainty: Concerns about potential economic slowdown and the effects of government spending cuts are weighing on investor sentiment.
Market Trends: There's a shift towards defensive sectors, with healthcare and consumer staples performing relatively well. There are also shifts of investment from US equities, to international equities. Consumer sentiment is down.
Interest Rates: Fluctuations in Treasury yields and speculation about future Fed rate cuts are contributing to market volatility.
Company Earnings and Forecasts: Individual company earnings reports and forecasts are driving specific stock movements, with reactions to results from companies such as Ulta Beauty, and Nvidia being noted.
"Magnificent Seven" Stocks: The "Magnificent Seven" stocks have been under pressure, with some entering or nearing bear market territory, after critics said they were over valued.
Friday's Rally: Friday saw a significant market rebound, with major indexes posting strong gains. This rally provided some relief after a period of sustained losses.
TAKEAWAY$
Quick recaps of the week's market activity, highlighting the highs and lows