• S. markets rebounded strongly on Friday, with all major indexes rallying. However, major indexes posted significant weekly losses, despite a Friday rebound.
• Big tech stocks, including Nvidia, Tesla, and Meta, saw sharp recoveries. All S&P 500 sectors closed higher, with energy and information technology leading.
• Stock futures declined, extending last week’s losses, with the Nasdaq in correction territory and the Russell 2000 nearing a bear market.
• The University of Michigan’s consumer sentiment index fell sharply, with rising inflation outlook.
• Investors awaited February’s retail sales data. The Federal Reserve’s policy meeting was a key focus, with expectations of steady interest rates.
• UK GDP unexpectedly contracted. China announced a “Special Action Plan to Boost Consumption.”
• European stocks opened higher. Asian markets saw broad gains, with Japan’s Nikkei and South Korea’s Kospi rising.
• S. Treasury yields showed mixed movements.
• Gold prices surged to a new all-time high. Oil prices climbed due to U.S. military action against Houthi rebels. Bitcoin remained flat, with traders cautious ahead of the Fed meeting.
• Investors grappled with rapidly evolving tariff policies. Growing signs of economic weakness increased market volatility. Fears of a deepening correction into a bear market persisted.

Stock futures declined early Monday, extending last week’s downturn on Wall Street. Equities endured another punishing week, with the Nasdaq Composite slipping further into correction territory and the small-cap Russell 2000 nearing a bear market, down nearly 20% from its recent high. The S&P 500 briefly entered correction territory before rebounding, while the Dow Jones Industrial Average suffered its steepest weekly decline since 2023, shedding 4.4%. Market sentiment remains fragile as investors grapple with persistent economic uncertainty.

US Market Previous Day:

U.S. markets bounced back on Friday, with all three major indexes staging a strong recovery. The S&P 500 surged 2.13%, the Dow Jones Industrial Average climbed 1.65%, and the Nasdaq Composite led the gains with a 2.61% rally. Despite the rebound, all three benchmarks posted weekly losses, with the S&P 500 shedding approximately $5.28 trillion in market value over the past three weeks. Stocks rallied as investors took a breather from tariff-related concerns. The Dow jumped 674.62 points to close at 41,488.19, while the S&P 500 and Nasdaq logged their best single-day performances of 2025, closing at 5,638.94 and 17,754.09, respectively.

(Source: TradingView.com)

Big tech stocks, which had been under pressure earlier in the week, saw a sharp recovery. Nvidia surged over 5%, Tesla gained nearly 4%, and Meta Platforms advanced close to 3%. Amazon and Apple also contributed to the rebound.

All 11 S&P 500 sectors closed higher, with energy and information technology stocks leading the charge, each rising nearly 3%. Financials and consumer discretionary stocks followed, climbing more than 2%. However, only the energy and utilities sectors managed to post weekly gains, rising more than 2% and 1%, respectively.

US Futures in Red:

• Dow Jones Industrial Average futures lead the pack with decline of 0.44%
• S&P 500 futures showed losses of 0.28%
• Nasdaq Composite futures remained flat with losses of 0.14%.

Key Economic Data/News:

The University of Michigan’s mid-March consumer sentiment index fell to 57.9, marking a 10.5% decline from February and missing the Dow Jones consensus estimate of 63.2. The one-year inflation outlook surged to 4.9%, the highest level since November 2022. “Many consumers cited the high level of uncertainty around policy,” said Joanne Hsu, the survey’s director.

Investors will closely analyze February’s retail sales data, set for release on Monday at 7:30 a.m. ET, as a key gauge of U.S. economic health. Economists polled by Dow Jones expect retail sales to have risen by 0.6%, offering insight into consumer resilience amid ongoing economic uncertainty.

All attention now turns to the Federal Reserve’s policy meeting on Wednesday, where officials are widely expected to hold interest rates steady. The CME Group’s FedWatch tool indicates a 99% probability that rates will remain unchanged. While Fed Chair Jerome Powell has emphasized patience in cutting rates, investors will scrutinize his post-meeting remarks for any signals of economic weakness or shifts in monetary policy.

In the U.K., GDP unexpectedly contracted by 0.1% in January, defying economist expectations for 0.1% growth. Market expectations suggest the Bank of England will keep rates steady at 4.5% during its upcoming policy meeting, according to LSEG data.

Meanwhile, China announced a “Special Action Plan to Boost Consumption” on Sunday, aiming to support domestic demand in the world’s second-largest economy. The plan includes initiatives to stabilize the stock market and expand bond products tailored for individual investors.

Global Market Trends:

European stocks opened the new trading week in positive territory, with investors monitoring global market volatility. The pan-European Stoxx 600 climbed 0.45%, with most sectors moving higher. Markets ended last week on a strong note, supported by reports that German lawmakers are making progress on reforming the country’s debt brake rule.

Asia-Pacific markets saw broad gains on Monday as investors closely watched Chinese equities. Mainland China’s CSI 300 dipped 0.24% to 3,996.79, while Hong Kong’s Hang Seng Index rose 0.77% in late trading.

Japan’s Nikkei 225 jumped 0.93% to 37,396.52, with the broader Topix index up 1.19% at 2,748.12. However, Japanese government bond yields surged, with 40-year JGBs hitting a record 3.007%, while 30-year JGBs climbed to a 19-year high of 2.635%.

South Korea’s Kospi index advanced 1.73% to 2,610.69, and the small-cap Kosdaq gained 1.26% to 743.51. Australia’s S&P/ASX 200 closed 0.83% higher at 7,854.10.

Debt Market:

(Source: TradingView.com)

On Monday, U.S. Treasury yields showed mixed movements as investors anticipated retail sales data and prepared for a significant week ahead. The 10-year Treasury yield decreased by approximately 2.5 basis points to 4.281%, while the 2-year Treasury yield increased by less than 1 basis point to 4.017%.

Commodities and Other Assets:

Gold prices surged to a new all-time high of $3,004.94 per ounce, with UBS strategists raising their price target to $3,200, citing further upside potential. The precious metal has gained 14% year-to-date, following a 27% rise in 2024, as investors flock to safe-haven assets ahead of the U.S. Federal Reserve’s policy meeting this week.

Oil prices climbed Monday after the U.S. vowed continued military action against Yemen’s Houthi rebels following their attacks on Red Sea shipping. President Donald Trump launched airstrikes on Saturday, with U.S. officials warning the campaign could last for weeks. The escalating conflict has raised concerns about potential disruptions to key global shipping routes, fueling a rally in crude markets.

(Source: TradingView.com)

Bitcoin remained flat on Monday after a weekly loss, as traders adopted a cautious stance ahead of the Federal Reserve’s March 18-19 policy meeting. The Fed is expected to keep interest rates unchanged, but investors are watching closely for any commentary on Trump’s new tariff policies and their potential impact on inflation and economic growth.

Market Sentiment:

Recent bearish moves have left investors struggling to keep up with President Donald Trump’s rapidly evolving tariff policies, which—combined with growing signs of economic weakness—have put markets in a tailspin. The ongoing uncertainty has raised fears that the current stock market correction could deepen into a full-blown bear market.