U.S. Stock Market Summary for Thursday, March 20, 2025


Major Indices Performance

  • S&P 500: ↓ 0.22% → 5,662.89
  • Dow Jones Industrial Average: ↓ 0.03% → 41,953.32
  • Nasdaq 100: ↓ 0.30% → 19,677.61
  • Russell 2000: ↓ 0.65% → 2,068.63

Market Overview

U.S. markets ended slightly lower on Thursday as investor sentiment remained cautious amid mixed signals from the Federal Reserve and ongoing trade policy uncertainty. While recent economic data showed resilience, concerns over inflation and potential tariffs limited gains.

The Federal Reserve kept interest rates unchanged and projected two rate cuts by year-end, citing a modest reduction in growth and slightly higher inflation. Fed Chair Powell maintained a cautious tone, noting uncertainty over the inflationary impact of trade tensions, especially as President Trump hinted at reciprocal tariffs beginning April 2.

In addition, volatility is expected to rise ahead of Friday’s “triple witching” — the simultaneous expiration of stock options, index futures, and index options — with roughly $4.5 trillion in contracts set to mature.

Notable Stock Movements

  • Nvidia (NVDA): ↑ 0.9% on plans to begin domestic chip production and establish a quantum research lab in Boston.
  • Accenture (ACN): ↓ over 7% despite meeting earnings estimates, citing delays in new contracts and federal spending reductions.
  • Darden Restaurants (DRI): ↑ 5% on mixed earnings and the launch of a new delivery partnership with Uber.
  • FedEx (FDX): Dropped post-market after cutting profit forecasts.
  • Micron (MU): Rose post-market following an optimistic outlook.
  • Nike (NKE): Gained after beating earnings expectations.

Sector Highlights

  • Technology: Supported by Nvidia’s strategic announcements.
  • Consulting Services: Accenture pulled the sector down amid contract delays.
  • Consumer Services: Darden rallied on strategic innovation.

Investor Sentiment & Outlook

Despite supportive economic data such as rising existing-home sales and declining jobless claims, broader market uncertainty prevailed. The Conference Board’s leading economic index fell 0.3% in February, following a 0.2% drop in January.

Investor sentiment remained extremely bearish, with the latest AAII survey showing 58.1% of investors holding a pessimistic view — the fourth consecutive week above 55%, an unprecedented streak.

  • Daniel Skelly, Morgan Stanley: “Volatility hasn’t vanished despite recent stabilization. Sentiment is still fragile.”
  • Michael Rosen, Angeles Investments: “Markets will continue to swing until policy clarity improves.”
  • Steven Massocca, Wedbush: “High volatility persists, and market direction will depend on upcoming catalysts.”
  • Jamie Cox, Harris Financial: “If the Trump administration recalibrates its tariff messaging, uncertainty could ease.”

Additional Market News

  • Luminar (LAZR) reported earnings that exceeded expectations.
  • Nvidia (NVDA) announced plans to open a new quantum research lab in Boston.
  • Apple (AAPL) rumored to be restructuring executive leadership in preparation for AI innovation and deeper Siri integration.

Conclusion

Thursday’s session reflected a cautious tone across markets as mixed signals from the Fed, trade uncertainty, and approaching contract expirations kept risk appetite in check. While certain sectors like technology and consumer services showed strength, investors remain highly sensitive to macroeconomic and geopolitical shifts.

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