U.S. Stock Market Summary for Friday, March 21, 2025


Major Indices Performance

  • S&P 500: ↑ 0.08% → 5,667.56
  • Dow Jones Industrial Average: ↑ 0.08% → 41,985.35
  • Nasdaq 100: ↑ 0.39% → 19,753.96
  • Russell 2000: ↓ 0.56% → 2,056.98

Market Overview

U.S. stocks ended slightly higher on Friday, breaking a four-week losing streak. The S&P 500 rebounded sharply in the final minutes of trading after falling over 1% earlier in the session, with trading volume spiking due to the quarterly "triple witching" of options and futures expiration.

President Trump’s remarks suggesting potential “flexibility” on tariffs helped lift market sentiment. However, he reaffirmed plans to impose reciprocal tariffs starting April 2 on any country that taxes U.S. goods.

Over the past month, concerns about economic slowdown, trade tensions, and tech overvaluation have caused U.S. equity market capitalization to drop by trillions of dollars. CTA funds reportedly reduced S&P 500 exposure to the lowest level since 2023, while retail investors poured over $12 billion into equities during the week ending March 19.

Notable Stock Movements

  • Tesla (TSLA): +5.3%, leading gains in large-cap stocks amid positive sentiment.
  • Boeing (BA): +4% following a $20 billion government contract to develop next-gen fighter jets.
  • FedEx (FDX): -10.9% after slashing its annual outlook due to weakening industrial demand.
  • Nike (NKE): Declined on tariff concerns affecting profitability.
  • Micron (MU): Fell after a cautious forward outlook.

Sector Performance

  • Transportation: Weighed down by FedEx; Dow Jones Transportation Average fell 2.1%.
  • Aerospace: Boeing's surge lifted the sector on defense spending optimism.
  • Automotive: Tesla outperformed the sector.
  • Apparel and Footwear: Nike declined amid trade policy worries.

Investor Sentiment & Fed Commentary

  • Michael Wilson (Morgan Stanley): “High volatility is likely to persist through the second half of 2025. A full recovery to February highs may be difficult.”
  • Michael Green (Simplify): “Trump’s tariff deadline is pressuring investor sentiment.”
  • Dennis DeBusschere (22V Research): “VIX and spread movements reflect uncertainty, not recession, supporting internal market stability.”
  • Chicago Fed’s Austan Goolsbee: “More time is needed to assess the economic impact of Trump’s policies.”
  • New York Fed’s John Williams: Agreed with Goolsbee, noting no urgency to change current monetary policy.

Additional Market News

  • Coinbase (COIN) is reportedly in talks to acquire crypto derivatives exchange Deribit (rumor).
  • Johnson & Johnson (JNJ) plans to invest $55 billion in U.S.-based manufacturing and R&D over the next four years.

Conclusion

Friday’s modest gains capped a volatile week, with market dynamics shaped by Fed policy, political rhetoric on tariffs, and a wave of quarterly derivatives expirations. Despite strength in tech and defense sectors, lingering concerns over trade and earnings expectations signal the need for continued caution heading into Q2.


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