Market Update | March 17th - March 21st

The What?

Starting off with some good news, the market finally saw a positive week after a four-week losing streak. As investors looked past fears of a recession, the market started to see a slight recovery. As discussed in last week’s market update, Friday was a very positive day, which likely continued its growth into this week. As per usual, let's look at some of our favorite indexes. The S&P rose 0.5%, the Dow rose 1.2%, and the Nasdaq saw a slight increase of approximately 0.2%. Overall, every major index saw growth this week, demonstrating some optimism in the market.

Now on to commodities. Gold saw an all-time high of around $3,028 by the end of the week, representing approximately 0.76% growth over the week. Oil also rose slightly, capping off at $68.28, showing a 1.04% increase over the week.

Cryptocurrency finally gathered some hope, rising around 1.73%, with other cryptocurrencies such as XRP and Solana following similar paths.

The Why?

There were three main reasons for the positive gains in the market this week.

First, global trade tensions eased. Since the beginning of the current Trump presidency, tariffs have been a major concern for the economy as they reduce consumer buying power. Some even say that Trump has started a trade war. However, the Trump administration announced this week that the tariffs set to take effect on April 2nd would be less severe than initially expected. The originally proposed tariffs will now be reduced, and a number of U.S. allies will be exempt from them. This boosted investor confidence as fears of a serious trade war simmered down.

Second, the Federal Reserve meeting came with some positive news. What was it? Many people have been thinking about a potential recession, hoping for any good news. This week, the Fed decided to maintain the current level of interest rates and expressed strong confidence in the U.S. economy. This reassured investors, leading to expectations of continued economic growth, which contributed to market gains.

Third, tech stocks took the lead in the market. After suffering week after week, with some companies dropping around 10%-20%, technology stocks finally saw a green week. One reason for this was several companies reporting better-than-expected growth forecasts for the coming months. Tesla, for example, saw higher-than-expected car deliveries and even expanded into new markets, propping up its stock after a terrible couple of months. Additionally, companies such as Nvidia and AMD saw slight rebounds as demand for AI-related computing power increased. Because tech stocks make up a significant portion of indexes such as the Nasdaq and S&P 500, their rebound greatly contributed to the market’s rise this week.

What's Next?

Next week, we should see continued positive growth in the markets. With easing tariff concerns and strong economic data, the market should maintain its rebound. As the economy experiences less volatility, we should see more stability.

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Comment down below what you're excited for next week in the market!