Weekly Market Insights | Rough Week for Stocks, with Slight Friday Rally

Investors endured another volatile, whipsaw week as ongoing trade talks and White House comments about the economy unsettled investors. 

The Standard & Poor’s 500 Index declined 2.27 percent closing Friday's session at 5,578.10, while the Nasdaq Composite Index dropped 2.43 percent closing at 17,754.09. The Dow Jones Industrial Average fell 3.07 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.95 percent.^1,2

Markets Stem Losses

Stocks opened the week lower as investors reacted to the president’s weekend comments about the economy. Then, U.S. and Canadian leaders traded additional tariff threats, riling up anxious investors.^3,4

Stocks rebounded midweek after a cooler-than-expected Consumer Price Index (CPI) report eased growing inflation concerns.⁵

The broad market slide resumed Thursday, but better-than-expected February wholesale inflation data helped buffer losses. The S&P 500 ended Thursday in correction territory—10 percent below its February 19 record close.⁶

Markets pushed higher Friday, clawing back some losses for the week. News of progress in resolving the federal government shutdown soothed investors’ nerves.⁷

Here's more of what's happening and what's coming up...

Investors remain concerned about the outcome of an ongoing tariff war between the US and several of its trading partners. Canada, the largest importer of US goods, imposed 25% retaliatory tariffs on more than $20 billion of US products and the European Union said it will impose counter-tariffs on up to 26 billion euros ($28.35 billion) worth of US goods starting next month.

US President Donald Trump earlier this week put 25% tariffs on steel and aluminum imports. The European Union retaliated with levies of its own, including those on some US alcoholic beverages. Trump then said he will impose a 200% levy on all alcohol products coming from the EU if the bloc didn't rescind its tariffs on US alcohol.

Inflation in the US was slightly cooler than expected in February with the consumer price index rising 0.2% from the previous month and 2.8% year over year. Analysts surveyed by Bloomberg predicted increases of 0.3% and 2.9%, respectively.

The University of Michigan's preliminary consumer sentiment index fell to 57.9 in March from 64.7 in February, compared with expectations for a much smaller decrease to 63.0 in a survey compiled by Bloomberg. The drop came as respondents raised their inflation expectations.

All but the energy and utilities sectors of the S&P 500 fell this week. Consumer staples had the largest percentage drop, sliding 4.3%, followed by a 3.7% decline in consumer discretionary, a 3.5% loss in communication services and a 3% decrease in health care.

Estee Lauder (EL) was hit hardest in the consumer staples sector, falling 9.3%. Adobe (ADBE) said the beauty care company is using its generative artificial intelligence platform Firefly in digital market campaigns.

In consumer discretionary, shares of Dominos Pizza (DPZ) fell 9.8%. A regulatory filing showed Chief Financial Officer Sandeep Reddy sold 1,077 shares in the company for $477,326 on March 10.

Among communication services stocks, Warner Bros. Discovery (WBD) fell 8%. The company is partnering with Coupang Play to offer exclusive HBO and HBO Max original content on the South Korean video streaming service starting March 21.

DexCom (DXCM) was the biggest percentage decliner in health care, falling 9.2% after it received a notice from the US Food & Drug Administration last week regarding manufacturing and quality management non-conformities found during inspections at its Mesa, Arizona, and San Diego, California, facilities.

In energy, EQT (EQT) was up 7.9% as its Active Core Infrastructure fund agreed to buy Crown Castle's (CCI) small cells solutions business for $4.25 billion. On Monday, the company priced a tender offer to buy up to $750 million of outstanding 3.9% senior notes due 2027.

AES (AES) was the top performer in the utilities sector, gaining 9.4%. The company priced $800 million of 5.8% senior notes due 2032 and plans to use the proceeds to fund repurchases of its 3.3% senior notes due 2025 in a tender offer.

Next week, earnings reports are expected from companies including Accenture (ACN), Nike (NKE), Micron Technology (MU) and PDD Holdings (PDD).

Economic data will include February retail sales, industrial production, the Federal Open Market Committee's interest-rate decision and existing home sales.

Sunny Side ‘Down’

Fewer CPI constituents garner more attention from consumers right now than the price of eggs. Avian bird flu—and the subsequent culling of millions of chickens—was primarily to blame for prices rising 15 percent in January and another 10 percent in February. While recent evidence suggests prices have dropped, the cost of eggs remains a sticky issue—even though prices of many other items have risen just as much, if not more.^8,9

So why do consumers appear to be overly uneasy?

One theory is that eggs symbolize something more significant. Not only are eggs a critical, inexpensive source of protein and nutrients for millions of consumers, but they are also a core part of many other foods made at home or mass-produced. For that reason, eggs are a mental proxy for how consumers believe the broader economy is doing.¹⁰

This Week: Key Economic Data

Monday: Retail Sales. Business Inventories. Homebuilder Confidence Index.

Tuesday:  Housing Starts and Permits. Import & Export Prices. Industrial Production. Capacity Utilization. Federal Open Market Committee (FOMC) meeting—Day 1.

Wednesday:  FOMC meeting—Day 2. Fed Announcement/ Fed Chair Press Conference.

Thursday:  Existing Home Sales. Weekly Jobless Claims. Leading Indicators.

Friday:  Federal Reserve Official John Williams speaks.

^{Source: Investors Business Daily - Econoday economic calendar; March 13, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Wednesday:  General Mills, Inc. (GIS)

Thursday:  Nike, Inc. (NKE), Micron Technology, Inc. (MU), FedEx Corporation (FDX)

^{Source: Zacks, March 13, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“It takes 20 years to build a reputation and five minutes to ruin it."

– Warren Buffett

If You Didn’t Receive Your W-2

If you don’t receive your W-2 or 1099 by January 31 of the year, you are filing taxes, or if the information on these forms is incorrect, contact your employer/payer. If you still haven’t received the forms you need by the end of February, you can contact the IRS at 800-829-1040, and they may be able to help. 

When you contact the IRS, they will also reach out to the employer/payer for the information you need, and they will also send you Form 4852, a substitute for a W-2 or 1099. To do this, they will ask for your employer/payer’s name, address, and phone number (as well as your information).

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹¹

How to Make Hummus

Hummus is a dip made primarily from garbanzo beans and is great on pita bread, veggies, or chicken. Here’s how to make hummus:

1. In a food processor or blender, combine ¼ cup tahini (sesame paste) with ¼ cup fresh lemon juice—process for one minute. 
2. Add 2 tablespoons olive oil, ½ teaspoon ground cumin, ½ teaspoon of salt, and 1 minced garlic clove to the mix and process until well-blended in 30-second increments (about a minute). 
3. Add half a can (¾ cup) of rinsed chickpeas and process for 1 minute. Then, add the other half of the can and process another 1-2 minutes. 
4. If your hummus still has bits of chickpeas, process it a bit more while slowly adding 2-3 tablespoons of cold water. 
   

Tip adapted from Inspired Taste¹²

I twist, I turn, but I don’t have curves. You can twist me to fix me, but you may throw me into disarray in the process. Hours later, you may cast me away. What am I?

Last week’s riddle: What binds two people together yet touches only one person at a time?
Answer: An individual wedding ring.

Lake Winnipesaukee in Autumn
New Hampshire, USA

Footnotes and Sources

^{1. The Wall Street Journal, March 14, 2025}

^{2. Investing.com, March 14, 2025}

^{3. The Wall Street Journal, March 10, 2025}

^{4. CNBC.com, March 11, 2025}

^{5. CNBC.com, March 12, 2025}

^{6. CNBC.com, March 12, 2025}

^{7. The Wall Street Journal, March 14, 2025}

^{8. MarketWatch.com, March 12, 2025}

^{9. Newsweek, March 11, 2025}

^{10. MarketWatch.com, March 10, 2025}

^{11. IRS.gov, April 3, 2024}

^{12. Inspired Taste, October 3, 2024}