Stock Market Recap: March 20, 2025
On Thursday, U.S. stock indexes edged slightly lower as investors balanced optimism over the Federal Reserve's dovish stance with lingering uncertainty surrounding President Donald Trump's latest trade policy shifts. While the Fed confirmed its intention to cut rates later this year, growing concerns over tariffs on key trade partners, including Mexico and Canada, continued to create volatility across sectors.
Key Indices Movement
S&P 500: The index fell 0.2%, shedding 12.40 points to close at 5,662.89. A pullback in large-cap technology stocks and ongoing geopolitical concerns weighed on sentiment. However, defensive sectors like utilities and healthcare helped offset deeper losses.
Dow Jones Industrial Average: The blue-chip index dipped 0.1%, declining 11.31 points to finish at 41,953.32. Boeing (BA) was a bright spot, gaining 6.7% after positive reports about its Q1 performance, while financials struggled on concerns over regulatory changes.
Nasdaq Composite: The tech-heavy Nasdaq slid 0.3%, falling 59.16 points to 17,691.63. Semiconductor stocks took a hit following comments from industry analysts that suggested slowing demand for high-end AI chips in China.
Despite the overall decline, market breadth was relatively balanced, with roughly 60% of S&P 500 stocks trading higher on the day, indicating that losses were concentrated in a few key sectors rather than broad-based panic.
Major Earnings Reports
Earnings season continued with mixed results, as some companies impressed with strong growth while others faced challenges from macroeconomic uncertainties.
Darden Restaurants (DRI): The parent company of Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen posted better-than-expected revenue, though same-store sales growth came in weaker than expected at 1.2%. However, a new partnership with Uber Eats to expand its delivery offerings excited investors, sending the stock 5.8% higher. Analysts believe this move could improve Darden’s off-premise sales mix, a growing segment in the restaurant industry.
Accenture (ACN): The global consulting giant met Wall Street's earnings expectations but warned of potential revenue headwinds due to reductions in federal IT spending. Shares dropped over 7%, as analysts raised concerns that increased government budget scrutiny could slow contract renewals and impact earnings growth in the coming quarters.
Jabil Inc. (JBL): The electronics manufacturing company reported strong quarterly earnings, beating expectations on both revenue and profit. The 3% stock increase reflected investor confidence in Jabil’s operational efficiency and rising demand for its contract manufacturing services, particularly in electric vehicles (EVs) and data centers.
Federal Reserve Outlook
Yesterday, the Federal Reserve maintained its benchmark interest rate but reaffirmed expectations for two rate cuts by the end of 2025, slightly reducing its economic growth forecast while increasing its inflation outlook.
Investors reacted positively to Fed Chair Jerome Powell’s comments, which emphasized that the central bank is still committed to supporting economic expansion while keeping inflation under control. Powell also addressed concerns over labor market softening, indicating that the Fed is closely monitoring employment trends before making further policy adjustments.
Bond yields initially dropped following the announcement, but quickly rebounded as traders reassessed the timeline for the Fed’s policy moves. The 10-year U.S. Treasury yield remained near 4.25%, signaling that the market is still cautious about inflation risks.
