Stock Market Update Friday March 28, 2025

Stock Market Update Friday March 28, 2025 Traders reacted negatively to the combination of a hotter-than-expected PCE report and deteriorating Consumer Sentiment data this morning, triggering a sharp sell-off in equities ahead of the weekend. Risk-off sentiment drove major indices lower, with the S&P 500 (SPX) declining 2.0%, the Nasdaq-100 (QQQ) sliding 2.6%, and the Russell 2000 (IWM) dropping 2.1% on the day. For the week, the S&P 500 finished down 1.5% as investor uncertainty weighed on broader markets. Big Tech bore the brunt of the sell-off, with Meta (META), Amazon (AMZN), and Alphabet (GOOGL) tumbling more than 4%, as growth-sensitive stocks faced heavy de-risking amid shifting macro conditions.

Away From Stocks: The Treasury market rallied sharply, with the policy-sensitive 2-year yield sliding eight basis points to 3.89%, touching its 2025 low as investors sought safety in government bonds. WTI crude retreated to $69 per barrel, reflecting demand concerns, while gold surged over 1%, surpassing $3,082 per ounce, fueled by haven flows. Bitcoin fell below $84,000, extending its recent pullback, while market volatility ticked higher, with the VIX closing near 22, rising just under three points for the week.

Premium Market Outlook:

Current market conditions bear a strong resemblance to the 2018 tariff-driven correction, when equity markets tumbled 12% following President Trump's Davos tariff announcement on January 26th. That sell-off ultimately bottomed out by February 19th, marking a textbook risk-off cycle driven by policy uncertainty and shifting macroeconomic conditions.