U.S. Stock Market Weekly Recap – March Madness

S&P 500 Ends Losing Streak, Dow and Nasdaq Also Rebound

The S&P 500 (SPX) snapped its four-week losing streak, posting a 0.5% gain last week. The Dow Jones Industrial Average (DJI) rose by 1%, ending higher for the first time in three weeks. Meanwhile, the Nasdaq Composite (IXIC) eked out a 0.2% gain, marking its first advance in five weeks.

Despite some choppy sessions, with sharp downdrafts along the way, the March lows remained intact, signaling a potential fresh start for the market as the quarter progresses.

Market Trends and Key Drivers

• Stock market correlations are cooling (.CORM), which has allowed equities to stage a comeback from mid-March lows.

• The U.S. 10-Year Treasury yield (US10Y) hovers around 4.25%, maintaining its position in the Ichimoku cloud– a technical indicator often used to assess support and resistance levels.

• Sector performance was mixed, with only a few sectors scoring gains while defensive plays lagged.

Sector Highlights

✅ Winners:

• Energy (SPN) +3.2%: The sector rallied as crude oil prices climbed following geopolitical tensions. The U.S. vowed to continue strikes on Yemen’s Houthis, imposed fresh sanctions on Iran, and faced expectations of tighter global oil supply.

• Financials (SPF) +1.9%: The sector surged, led by Berkshire Hathaway increasing stakes in Japanese trading houses, pushing those shares to record highs.

• Healthcare (S5HLTH) +1.1%: The sector saw gains despite Incyte (INCY) dropping after its experimental skin disease drug, while meeting primary trial goals, significantly underperformed prior studies.

• Industrials (S5INDU) +0.8%: Boeing (BA) gained after winning a U.S. fighter jet contract, though Lockheed Martin (LMT) slipped in contrast.

? Laggards:

• Consumer Discretionary (S5COND) Flat: The sector struggled with Nike (NKE) tumbling following a bleak revenue forecast.

• Tesla (TSLA) saw a volatile week: The stock slumped nearly 10% over two sessions, rebounded on Wednesday, and climbed again on Friday after Elon Musk encouraged employees to retain their shares. However, Tesla still ended down for the ninth straight week.

• FedEx (FDX) fell after lowering full-year revenue and earnings outlook, citing economic uncertainty in the U.S.

Looking Ahead

With March coming to a close, investors are watching for fresh catalysts that could drive market direction. The Federal Reserve’s stance on interest rates, economic data releases, and ongoing geopolitical events will likely dictate near-term sentiment.