With the final trading day of March upon us, Wall Street braces for significant monthly and quarterly downturns following another challenging week. Investor sentiment remains shaky amid economic and inflation concerns, exacerbated by former President Donald Trump’s controversial tariff policies. The impact of these tariffs, both implemented and impending, is evident in the financial markets, where fluctuations have become the norm.
The tech sector continues to reel, with the recent hiccup stemming from CoreWeave’s disappointing initial public offering. The high-profile company, known for renting Nvidia chips for artificial intelligence workloads, debuted on the stock market at $39—below the anticipated $40 benchmark. Despite a brief rise to $41.92, CoreWeave’s shares settled unchanged at $40, marking the biggest U.S. tech IPO since 2021. This performance is a reflection of the broader market trend, where a hotter-than-expected inflation report and widespread weaknesses in technology stocks led the S&P 500 to drop by 1.5% and the Nasdaq by 2.6% over the week. As of the close, the S&P 500 and Nasdaq have plunged nearly 6.3% and 8.1% respectively in March, nearing their worst monthly performances since late 2022. For the first quarter, they have fallen 5.1% and 10.3%, respectively, breaking a long-standing five-quarter winning streak.
Tariffs and upcoming job data are critical focal points in the upcoming week. Former President Trump announced the enactment of reciprocal tariffs intended to counterbalance those imposed on U.S. exports by trading partners. Set to commence imminently, these tariffs have seen the European Union considering concessions to mitigate their effects. Meanwhile, temporary exemptions on tariffs for some Canadian and Mexican goods, under the USMCA, also approach expiration amidst late-stage negotiations. Notably, Trump declared last week that 25% tariffs on non-U.S. autos and parts will begin shortly, despite prior communications with auto industry leaders about potential price hikes. In an NBC News interview, Trump remarked, “I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” underscoring his stance on bolstering domestic manufacturing.
Parallel to tariff developments, the release of pivotal employment data adds another layer of complexity. The Labor Department’s upcoming Job Openings and Labor Turnover Survey (JOLTS) and the subsequent employment reports will give insights into job growth and the broader economic climate. Economists, according to FactSet, predict substantial decreases from prior months, influenced in part by federal workforce reductions championed by the Trump administration. The private payrolls data from ADP, which excludes federal jobs, is expected to underscore this economic sluggishness. March’s nonfarm payrolls data will be closely watched, predicted to modestly underperform previous months.
Looking ahead, key economic indicators such as the Chicago PMI and ISM surveys will provide further clarity on the health of the economy. With few earnings reports due, market attention will focus on these macroeconomic markers as traders navigate these turbulent times. As always, investors must remain vigilant, assessing how these unfolding events will impact the markets. Stay informed with CNBC’s Investing Club for timely analysis and strategic insights, keeping you ahead in these unpredictable economic waters.
Original Source: https://www.cnbc.com/2025/03/30/these-are-the-2-big-things-were-watching-in-the-stock-market-this-week.html
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Publish Date: 2025-03-30 22:11:00
