Stock Market Update Monday March 3, 2025

Stock Market Update Monday March 3, 2025 Equities erased Friday’s gains, with the S&P 500 (SPX) turning negative year-to-date, as risk appetite deteriorated. An early rally attempt failed to gain traction, and selling pressure intensified following confirmation that scheduled tariffs will proceed as planned, compounded by disappointing manufacturing data and the Atlanta Fed’s GDPNow model forecasting a contraction in Q1 GDP.

• S&P 500 (SPX): -1.8%

• Nasdaq 100 (QQQ): -2.2%

• Russell 2000 (IWM): -2.8%

Away From Stocks: Treasury's rallied, with yields declining across the curve:

• 2-year yield: 3.96% (-3 bps)

• 30-year yield: 4.45% (-6 bps)

• WTI crude oil pulled back to $68 per barrel, reflecting growth concerns.

• Gold rebounded to $2,894 per ounce, benefiting from flight-to-safety demand.

• Bitcoin failed to sustain Monday’s "Trump pump," retreating from $86,200.

• The VIX surged over three points, closing near 23, signaling increased volatility expectations.

Market Outlook: Is a Change on the Horizon?

We expect current market conditions to lead to a possible low point in stock prices in the coming weeks. This expected increase in stock prices is likely to be supported by renewed monetary assistance from the Federal Reserve and fiscal measures from the Trump administration, along with positive trends in cryptocurrency markets. However, it is crucial to remain patient and wait for buy signals from our proprietary algorithms for Bitcoin and the SPY, RSP, QQQ, IWM, and DIA ETF's before making any new investments. Our investment strategy emphasizes a disciplined approach, avoiding market timing and emotional decisions in favor of algorithm-based entry points.

Over the weekend, Trump posted about creating a U.S. crypto reserve, naming several cryptocurrencies like XRP, Solana, Cardano, Bitcoin, and Ethereum. This spurred a significant rally in the crypto market. However, we currently do not have buy alerts from our proprietary algorithm for any of these digital currencies. Our investment strategy prioritizes a disciplined approach, avoiding market timing and emotional decisions, and instead relies on algorithm-based entry points.