Modest Friday Rally Caps Rough Week for Stocks:
Markets faced yet another turbulent week as ongoing trade negotiations and economic news from the White House unsettled investors.
The S&P 500 Index declined 2.27%, while the Nasdaq Composite Index dropped 2.43%. The Dow Jones Industrial Average fell 3.07%. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.95%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 1/30/25 = 0)
Markets Stem Losses
Stocks opened the week lower as investors reacted to the president’s weekend comments about the economy. Then, U.S. and Canadian leaders traded additional tariff threats, riling up anxious investors.3,4
Stocks rebounded midweek after a cooler-than-expected Consumer Price Index (CPI) report eased growing inflation concerns.5
The broad market slide resumed Thursday, but better-than-expected February wholesale inflation data helped buffer losses. The S&P 500 ended Thursday in correction territory—10 percent below its February 19 record close.6
Markets pushed higher Friday, clawing back some losses for the week. News of progress in resolving the federal government shutdown soothed investors’ nerves.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Sunny Side ‘Down’
Fewer CPI constituents garner more attention from consumers right now than the price of eggs. Avian bird flu—and the subsequent culling of millions of chickens—was primarily to blame for prices rising 15 percent in January and another 10 percent in February. While recent evidence suggests prices have dropped, the cost of eggs remains a sticky issue—even though prices of many other items have risen just as much, if not more. So why do consumers appear to be overly uneasy?8,9
One theory is that eggs symbolize something more significant. Not only are eggs a critical, inexpensive source of protein and nutrients for millions of consumers, but they are also a core part of many other foods made at home or mass-produced. For that reason, eggs are a mental proxy for how consumers believe the broader economy is doing.10
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, March 14, 2025
2Investing.com, March 14, 2025
3The Wall Street Journal, March 10, 2025
4CNBC.com, March 11, 2025
5CNBC.com, March 12, 2025
6CNBC.com, March 12, 2025
7The Wall Street Journal, March 14, 2025
8MarketWatch.com, March 12, 2025
9Newsweek, March 11, 2025
10MarketWatch.com, March 10, 2025
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