U.S. stocks advance as market continues to recover from recent slump

U.S. stocks advance as market continues to recover from recent slump

  • 17.03.2025 23:37
  • thestar.com.my
  • Keywords: Market Volatility, Economic Slowdown

U.S. stocks rose Monday as markets recovered from recent declines. The Dow, S&P 500, and Nasdaq all ended higher, despite mixed performances among tech giants like Tesla and Nvidia. Investor sentiment was also affected by concerns over economic growth and the Federal Reserve's upcoming interest rate decision.

Meta ReportsINTCsentiment_satisfiedNFLXsentiment_satisfiedAPPsentiment_satisfiedTSLAsentiment_dissatisfiedNVDAsentiment_dissatisfiedGOOGLsentiment_dissatisfiedAMZNsentiment_dissatisfiedMETAsentiment_dissatisfiedAAPLsentiment_satisfiedMSFTsentiment_satisfied
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Estimated market influence

Intel

Intel

Positivesentiment_satisfied
Analyst rating: Neutral

Rallied due to new CEO appointment

Advanced Micro Devices (AMD)

Positivesentiment_satisfied
Analyst rating: N/A

Gained as part of broader tech rally

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Upgraded by analyst

AppLovin

AppLovin

Positivesentiment_satisfied
Analyst rating: Buy

Rebounded after struggling in tech downturn

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Dropped due to ongoing decline since December's high

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Slipped ahead of GPU conference

Alphabet

Alphabet

Negativesentiment_dissatisfied
Analyst rating: Buy

Traded lower

Amazon

Amazon

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Traded lower

Meta Platforms

Meta Platforms

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Traded lower

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Modest gain

Microsoft

Microsoft

Positivesentiment_satisfied
Analyst rating: Strong buy

Modest gain

Context

Analysis of U.S. Stock Market Recovery

Market Performance

  • Dow Jones Industrial Average: Gained 353.45 points (0.85%) to close at 41,841.63.
  • S&P 500: Advanced 36.19 points (0.65%) to settle at 5,675.12.
  • Nasdaq Composite: Edged up 54.58 points (0.31%) to reach 17,808.67.

Sector and Stock Highlights

  • Sectors: Ten of the 11 primary S&P 500 sectors ended positive, led by real estate (+1.66%) and energy (+1.56%). Consumer discretionary was the only sector to decline (-0.44%).
  • Top Performers:
    • Intel: Rose 6.82%, driven by investor confidence post-new CEO appointment.
    • AMD: Gained 3.59%.
    • Netflix: Surged 3.49% after analyst upgrade.
    • AppLovin: Rebounded 4.77%, despite recent tech downturn challenges.

Economic Indicators and Sentiment

  • Retail Sales: February retail sales rose 0.2%, below the projected 0.6% increase. Excluding autos, sales climbed 0.3%, aligning with forecasts.
  • Manufacturing Activity: New York State's business conditions index dropped to -20 (from 5.7 in February), signaling a sharp slowdown.
  • Housing Market: National Association of Home Builders Housing Market Index fell to 39 (down from 42 in February).

Federal Reserve and Policy Considerations

  • The Fed is expected to keep interest rates unchanged at its two-day policy meeting starting March 18, 2025. Investors will monitor for Trump administration policy impacts on economic outlook.

Investor Sentiment and Market Concerns

  • Treasury Secretary Scott Bessent remarked that market corrections are healthy but expressed concerns about sustained euphoric markets.
  • RBC Capital Markets downgraded its year-end S&P 500 target to 6,200 (from 6,600) due to economic growth worries.

Long-Term Implications and Risks

  • The market faces headwinds from stronger economic "pullback" risks, as noted by RBC Capital Markets' Lori Calvasina.
  • Investors remain cautious about the broader economic slowdown and potential regulatory impacts of Trump administration policies.