Market Recap (3/9/25)
Market Recap of the Week of Mar 3, 2025 - Mar 7, 2025
Source: Apple Stocks Application
Overall Market Trends:
Stocks were demolished last week with all four major indices experiencing consistent, major daily declines. The New York Stock Exchange Composite (NYSE) fell 456 points (-2.27%), the S&P 500 collapsed 163 points (-3.07%), the NASDAQ Composite tumbled 642 points (-3.41%), and the Dow Jones Industrial Average posted weekly losses of 1,030 points (-2.35%). These results were largely influenced by new U.S. trade policies including tariffs.
The market started the week off poorly with all major indices dropping over 1.5%. These results came after President Trump reaffirmed that his plans to levy 25% tariffs on Mexico and Canada will be proceeding as planned and go into effect on Tuesday. He also announced that the reciprocal tariffs he had mentioned last month would start on April 2. When new tariffs are levied, the stock market often reacts negatively because they increase costs for businesses. This can reduce profit margins if companies cannot pass the costs onto consumers, leading to lower investor confidence and stock price declines. As a result, nearly all sectors took a hit. Nvidia (NASDAQ: NVDA) plummeted more than 8% while artificial intelligence counterparts, Broadcom (NASDAQ: AVGO) and Super Micro Computer (NASDAQ: SMCI), fell 8% and 14.8%, respectively.
Stocks continued to plunge on Tuesday after President Trump announced that the United States would impose even higher tariffs on Canada in response to Canadian Prime Minister Trudeau levying a reciprocal 25% tariff on the US. Companies directly impacted by imports from these tariffs took a hit. Chipotle (NYSE: CMG), which gets nearly half of its avocados from Mexico, fell 2% while GM (NYSE: GM) and Ford (NYSE: F) declined more than 4% and 3%, respectively. Target also pulled back roughly 3% after the company’s CEO announced that it would be increasing produce prices as a result of these tariffs.
Stocks soared on Wednesday after a report that the US would allow a one-month exception for automakers that complied with the United-States-Mexico-Canada Agreement (USMCA) would extend to other sectors. This news caused automakers to surge with Stellantis (NYSE: STLA), Ford, and GM rallying 9%, 7%, and 5%, respectively.
The market resumed its decline on Thursday as investor fatigue regarding the current trade policy fiasco ignited a sell-off. While the White House did announce that other goods would receive one-month exemptions from the recent tariffs, it did not spur another rally similar to Wednesday’s news.
Stocks rebounded slightly on Friday on highly versatile trading, overcoming losses encountered earlier in the day. Investors looked past weaker-than-expected job reports with the unemployment rate rising to 4.1% and the Nonfarm payrolls report coming in at 151,000, lower than the 170,000 estimate.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Nothing Scheduled
Tuesday: NFIB optimism index; Job openings
Wednesday: Consumer Price Index (CPI); Core CPI
Thursday: Initial jobless claims; Producer Price Index (PPI); Core PPI
Friday: Consumer sentiment (prelim)
Future Earnings Reports: