Stocks Slide as Trade Tensions Escalate
On Thursday, March 13, 2025, U.S. financial markets experienced notable declines, influenced by escalating trade tensions and mixed corporate earnings reports.
Key Indices Movement:
S&P 500: The index fell by 1.33%, closing at 5,521.52, officially entering correction territory as it dropped over 10% from its recent record high.
Dow Jones Industrial Average: The Dow decreased by 1.25%, shedding 537.36 points to end at 40,813.57.
Nasdaq 100: The tech-heavy index declined 1.8%, reflecting significant losses in technology stocks.
Major Earnings Reports:
Ulta Beauty Inc. (ULTA): The beauty retailer reported fourth-quarter earnings per share of $8.46, surpassing analyst estimates of $7.11. Revenue reached $3.5 billion, slightly above the anticipated $3.46 billion. Comparable sales increased by 1.5%. For fiscal year 2025, Ulta projects earnings per share between $22.50 and $22.90 on revenue ranging from $11.5 billion to $11.6 billion, compared to analyst expectations of $24.04 EPS on $11.26 billion revenue. Shares surged 7% in after-hours trading following the report.
DocuSign Inc. (DOCU): The e-signature company reported fourth-quarter revenue of $776.3 million, marking a 9% year-over-year increase. Subscription revenue contributed $757.8 million, also a 9% increase. Billings rose by 11% to $923.2 million. GAAP gross margin stood at 79.4%, slightly up from 79.2% in the same period last year. Non-GAAP gross margin was 82.3%, compared to 82.5% previously. The company projects full-year revenue between $3.129 billion and $3.141 billion, aligning closely with analysts' expectations of $3.15 billion. Shares rose over 4% in extended trading following the announcement.
Notable Industry News:
Trade Tensions: President Donald Trump's announcement of new tariffs targeting European goods intensified fears of a global trade war, contributing to the market's downturn.
Economic Indicators: Despite the market's decline, reports indicated that U.S. household wealth reached a record high in the fourth quarter, primarily driven by stock market gains.
In summary, the day's market activity was heavily influenced by geopolitical developments and cautious corporate forecasts, leading to widespread declines across major indices and sectors.
