Stock Market Recap: Friday, March 7, 2025
On Friday, March 7, 2025, U.S. stock markets experienced a notable rebound, closing higher after a week marked by economic uncertainty and fluctuating investor sentiment.
Key Indices Movement
S&P 500: The S&P 500 rose 0.6%, closing at 5,769.69. Despite this gain, the index recorded a weekly loss of 3.1%, reflecting ongoing concerns over the U.S. economy and President Donald Trump's tariff policies.
Dow Jones Industrial Average: The Dow increased by 0.5%, adding 215.18 points to end at 42,794.26. For the week, the Dow declined 2.4%, indicating investor caution amid economic uncertainties.
Nasdaq Composite: The Nasdaq Composite climbed 0.7%, closing at 18,193.16. However, it posted a weekly loss of 3.5%, largely due to volatility in the technology sector.
Notable Movers
Broadcom (AVGO): Shares of Broadcom surged 8.4% following robust fiscal first-quarter results. The company reported revenue of $14.92 billion, surpassing Wall Street's forecast of $14.62 billion, with adjusted earnings per share at $1.60, exceeding the expected $1.51. CEO Hock Tan attributed these record revenues to strong performance in AI semiconductor solutions and infrastructure software. Broadcom's optimistic forecast for the current quarter further bolstered investor confidence.
Hewlett Packard Enterprise (HPE): The company's stock plummeted 13% after reporting mixed earnings and issuing a disappointing forecast for the second quarter. HPE also announced upcoming layoffs, raising concerns about its future performance and the broader enterprise technology sector.
Gap Inc. (GPS): Gap's shares soared 17% after the retailer reported better-than-expected quarterly profits, indicating positive impacts from its restructuring efforts. The company's performance suggests resilience in the retail sector amidst broader market challenges.
Costco Wholesale Corporation (COST): Costco's stock declined 6.6% after the company's earnings fell short of Wall Street expectations. The retailer cited increased merchandise costs as a contributing factor, signaling potential challenges ahead in maintaining profit margins.
Walgreens Boots Alliance (WBA): Shares rose 7.5% after announcing a $10 billion deal to go private, signaling a significant shift in the company's strategic direction and boosting investor confidence.
Notable Industry News
Federal Reserve's Stance on Tariffs: Federal Reserve Chair Jerome Powell commented on the administration's tariff plans, stating it remains to be seen if they will prove to be inflationary. His remarks provided some reassurance to investors concerned about potential economic impacts.
Employment Report: The U.S. economy added 151,000 jobs in February, fewer than the anticipated 170,000, raising the unemployment rate to 4.1%. This weaker-than-expected job growth contributed to concerns about the economy's resilience.
