Traders at the New York Stock Exchange experienced a positive start on Monday, with Wall Street bouncing back after a recent downturn triggered by a turbulent tariff policy introduced by former President Donald Trump and declining consumer confidence. The S&P 500 increased by 1%, while the Nasdaq Composite ascended 0.8%. The Dow Jones Industrial Average bolstered these gains, rising by 510 points, or 1%, driven by advancements in major corporations like Walmart and International Business Machines.
“We’re in a near-term counter-trend rally,” commented Sam Stovall, CFRA Research’s chief investment strategist, in an interview with CNBC. He expressed belief that the S&P 500 might reach a correction point near the 5,400 level, indicating a further decline of over 4% from Friday’s closing figures. “Not much more to the downside,” he explained, “but I think that will shake off enough loose hands to allow the market to try to find a bottom.”
Bolstering investor sentiment was the February retail sales report. While retail sales grew by 0.2% month-over-month—falling short of the Dow Jones forecast for a 0.6% uptick—traders were relieved that figures weren’t worse. Excluding auto sales, the increase hit 0.3%, aligning with economists’ predictions.
Last week saw the S&P 500 dip into correction territory, down over 10% from its late-February peak. However, it surged by 2% on Friday as investors took advantage of lowered technology stock prices. Despite this recovery, it was a challenging week, with the Dow experiencing its largest weekly drop since 2023. The Nasdaq Composite remained in correction, down 11% from its recent high.
The market’s volatility has been exacerbated by the swift shifts in Trump’s tariff policies and the harsh cost-cutting measures from Elon Musk’s DOGE department. These actions have led to market instability and heightened concerns over corporate and consumer confidence. Statements from the Trump administration indicating that some economic and market disruption would be acceptable in return for an ambitious overhaul of government agencies and global trade policies added to market apprehensions.
Treasury Secretary Scott Bessent addressed these concerns on NBC’s “Meet the Press,” stating, “I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal.” He warned against unchecked market exuberance, which he believes contributed to the financial crisis of 2008. Bessent also remarked on the potential need for a “detox” period, shifting the economy from government to private spending, while acknowledging that avoiding a recession isn’t guaranteed.
Adding further insight, Derek Harris of Bank of America Securities noted, “The US ‘detox’ of efficiency, deregulation, and trade may mean more market pain before visible GDP gains,” implying that adjustments to fiscal policy might lead to short-term discomfort before longer-term economic benefits are realized.
This news unfolds amid investors’ attempts to navigate tumultuous market conditions, driven by both domestic policy shifts and global economic dynamics. The financial community awaits further clarity on these developments as Wall Street strives to stabilize and adapt to new regulatory landscapes.
Original Source: https://www.cnbc.com/2025/03/16/stock-market-today-live-updates.html
Category :
Tags:
Publish Date: 2025-03-18 01:04:00
