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Wall St ends higher as selloff prompts dip-buying rally

Wall St ends higher as selloff prompts dip-buying rally

  • 16.03.2025 21:38
  • thenightly.com.au
  • Keywords: Recession fears, Trade war, Market volatility

Wall Street ended higher Friday as investors sought bargains during a dip-buying rally, driven by fears of a trade war and economic uncertainty. The S&P 500 and Nasdaq recorded their biggest gains since November, with tech stocks leading the rebound despite ongoing concerns about market fundamentals.

Nvidia ReportsNVDAsentiment_satisfiedTSLAsentiment_satisfied

Estimated market influence

Nvidia

Nvidia

Positivesentiment_satisfied
Analyst rating: Strong buy

Shares jumped ahead of GPU Technology Conference and Jensen Huang's keynote address.

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Rallied after plans to make a lower-cost Model Y in Shanghai.

Context

Business Insights and Market Implications

Overall Market Performance

  • S&P 500: Gained 2.13% (117.42 points) to close at 5,638.94
  • Nasdaq Composite: Advanced 2.61% (451.07 points) to reach 17,754.09
  • Dow Jones Industrial Average: Rose 1.65% (674.62 points) to close at 41,488.19

Sector and Stock Performance

  • Technology Stocks: Led the rally with a 3.0% gain
  • Chips: Surged 3.3%
  • FANG Group: Advanced 3.2%
  • Tesla: Increased by 3.9% following plans to produce a lower-cost Model Y in China
  • Nvidia: Jumped 5.3% ahead of the GPU Technology Conference

Consumer Sentiment and Inflation

  • Consumer Sentiment: Plummeted to its lowest level in nearly two years (University of Michigan report)
  • Inflation Expectations: Surged to 4.9% for one year

Market Dynamics

  • Market Volatility: Friday’s rally marked the biggest one-day percentage gains since November 6, 2023
  • New Highs and Lows:
    • NYSE: 75 new highs vs. 90 new lows
    • Nasdaq: 34 new highs vs. 161 new lows

Volume and Trading Activity

  • Total Volume: 14.64 billion shares traded, slightly below the 20-day average of 16.56 billion

Market Commentary

  • Investor Behavior: Dip-buying amid fears of a prolonged trade war and economic uncertainty
  • Fundamental Concerns: Despite rally, S&P 500 and Nasdaq logged fourth straight weekly losses

Long-Term Implications

  • Recession Fears: Escalating trade tensions and consumer pessimism raise concerns about economic growth
  • Safe-Haven Shift: Gold prices surpassed $3,000/ounce as investors sought refuge from market volatility

Strategic Considerations

  • Market Valuations: Indices down 10% from all-time highs, creating conditions for potential rallies despite unresolved fundamental issues
  • Policy Uncertainty: Trump’s shifting trade policies and advisor warnings of a possible recession weigh on investor sentiment

This analysis highlights the short-term rally driven by dip-buying and technical factors, while underlying concerns about economic growth and policy uncertainty persist.