Stock Market Update Tuesday March 18, 2025

Stock Market Update Tuesday, March 18, 2025

Equities faced renewed selling pressure, with the S&P 500 sliding 1.2%, erasing roughly half of its Friday-to-Monday rebound. The Nasdaq 100 (QQQ) declined 1.7%, leading the downside, while the Russell 2000 (IWM) dipped 0.9%, reflecting broad-based weakness across major indices.

Away From Stocks:

Treasury markets saw modest inflows ahead of Fed Chair Powell’s highly anticipated Wednesday press conference. The 2-year and 30-year yields each declined two basis points, settling at 4.04% and 4.58%, respectively. WTI crude oil pulled back to $66.50 per barrel, while gold extended its rally to fresh highs at $3,034 per ounce, signaling continued risk aversion. Bitcoin slid below $82,000, and volatility edged higher, with the VIX rebounding toward 22.

Algorithmic Sell Signals:

Our proprietary trading algorithm triggered sell alerts across all five major weekly chart index ETFs (SPY, RSP, QQQ, IWM, DIA) as of today. However, with the trading week still in progress, these signals remain preliminary. Should the sell triggers hold through Friday’s close, we will reassess our strategy accordingly.

SPY Weekly Chart

The Federal Reserve's Open Market Committee (FOMC) will announce no change in its interest rate decision tomorrow at 2 PM Eastern time. Following the announcement, Chairman Jerome Powell will hold a press conference. Investors have been concerned that the Fed will take a stronger stance ("hawkish") against inflation, possibly due to tariffs and immigration. However, we anticipate that Powell will indicate a more moderate ("dovish") approach.