The U.S. stock market experienced a turbulent week

The U.S. stock market experienced a turbulent week from March 24 to March 28, 2025, marked by significant losses across major indices due to escalating trade tensions and concerning economic indicators.​

Weekly Performance of Major Indices:

• S&P 500: Declined by 1.5%, closing at 5,718.08 on Monday and dropping to 5,605.71 by Friday.
• Dow Jones Industrial Average: Fell by approximately 1%, ending the week at 41,583.90.
• Nasdaq Composite: Suffered a 2.6% decrease, closing at 13,478.35. ​

Key Factors Influencing the Market:

1. Trade Tensions: President Donald Trump’s announcement of 25% tariffs on imports from Mexico, Canada, China, and all foreign-made automobiles intensified trade disputes, leading to market uncertainty. ​
2. Inflation Concerns: The Personal Consumption Expenditures (PCE) report indicated a rise in core inflation to 2.8% in February, surpassing expectations and raising fears of a high-inflation, low-growth economic environment. ​
3. Consumer Sentiment: The University of Michigan’s consumer sentiment index declined to its lowest level in over two years, reflecting growing concerns about the labor market and future economic conditions.

Notable Stock Movements:

• Lululemon Athletica: Shares plummeted by 14% to $293.06 after the company warned of potential revenue growth slowdowns due to cautious consumer spending.
• Tesla: Despite broader market declines, Tesla’s stock ended a nine-week losing streak, though it remains down nearly 35% for the year.

Investor Sentiment and Outlook:

The confluence of trade disputes, rising inflation, and weakening consumer sentiment has led to increased market volatility. Investors are advised to exercise caution, with some analysts suggesting that the current downturn may present buying opportunities, especially if historical trends of April being a favorable month for stocks hold true.

Looking ahead, market participants should monitor the implementation of the announced tariffs on April 2 and the upcoming earnings season, as these events may further influence market dynamics.