Stock Market Update Friday March 7, 2025

Stock Market Update – Friday, March 7, 2025 Following a volatile morning session characterized by early weakness, markets exhibited a nascent recovery today. Equities initially succumbed to selling pressure in the wake of the latest labor market data, which, while avoiding outright collapse, registered a softer-than-anticipated print. The S&P 500 (SPX) momentarily breached its 200-day moving average, igniting fears of accelerated capital flight and deepening losses. However, a midday reversal, driven by bargain hunting and potentially short covering, spurred a rally. The index subsequently consolidated its gains, concluding the session with muted price fluctuations and subdued trading volumes.

By the session’s end:

• SPX gained +0.5%

• Nasdaq-100 (QQQ) advanced +0.75%

• Russell 2000 (IWM) edged up +0.4%

Today's move snapped a six-day streak of 1%+ swings in the SPX, though the intraday range still approached 2%. Whether this more measured reversal signals a stabilization at current levels remains to be seen.

Away From Stocks:

• Treasury yields continued their ascent, with the 2-year rising 3 basis points to 3.99%, and the 30-year climbing 4 bps to 4.62%.

• WTI crude rebounded above $67 per barrel after recent weakness.

• Gold softened slightly to $2,911 per ounce.

• Bitcoin slid below $87,000, losing ground after recent gains.

Volatility Index (VIX) settled around 23, suggesting some moderation in market jitters.

Volatility, Policy Shifts, And a Return of the “Trump Put”?

Yesterday, equity markets faced renewed downside pressure, reversing recent stability and extending the S&P 500's decline to 7% from its peak over the past 11 trading sessions—edging closer to a technical correction (-10%). Notably, the S&P 500 briefly breached its 200-day moving average, signaling weakening momentum and increasing concerns over broader risk sentiment.