U.S. Stocks Plunge Amid Fed Rate Cut Speculation and Sectoral Volatility

March 13, 2025, U.S. stock market indices experienced a downturn, with the S&P 500 falling 1.39%, the Dow Jones Industrial Average declining 1.30%, and the Nasdaq Composite dropping 1.96%. This market movement comes amidst speculation about Federal Reserve policy, as U.S. short-term rate futures suggest a potential rate cut in June. barclays has revised its forecast, now expecting two 25 basis point rate cuts in June and September 2025, up from its previous prediction of a single cut in June. These developments are influencing market expectations, despite recent economic indicators such as initial jobless claims and PPI data.

The S&P 500 index saw mixed performance across various sectors. The technology, discretionary consumer goods, communication services, and real estate sectors underperformed the broader market. Conversely, the utilities sector bucked the trend and posted gains.

Today, several major U.S. stocks experienced significant declines. netflix dropped 3.21% as investors anticipate a slowdown in subscriber growth by 2025 due to exhausted initiatives. tsmc shares fell 3.15% amid foreign investor sell-offs, driven by concerns over the chip industry's valuation. salesforce saw a 4.51% drop following a lackluster quarterly report, marked by slow growth and management issues. the home depot declined 4.19% after Piper Sandler lowered its price objective for the company. Apple's stock dropped 3.36% due to uncertainty surrounding tariffs, which significantly impacts its manufacturing and major market in China. Meta's shares fell 4.67% as insider selling activity raised concerns within upper management. Costco Wholesale dropped 3.93% following mixed earnings and warnings. SAP's stock declined 3.38% after Davis Selected Advisers reduced its stake in the company by 1.9%.

Regencell Bioscience's stock price surged over 235%, closing at $10.44, marking a significant gain of 148.46%. Micropolis Holding saw a substantial rise of 66.66% following its successful IPO, raising $15.5 million. Meanwhile, Creative Media & Community Trust Co. experienced a sharp decline of 46.15% after announcing a reverse stock split on Monday, January 6th, 2025. Springview also faced a significant drop of 43.55%, attributed to potential regulatory challenges that have dampened investor confidence.

The U.S. Treasury Secretary expressed a focus on long-term economic gains and safeguarding strategic industries, despite short-term market volatility. Meanwhile, the U.S. Producer Price Index (PPI) showed a decrease in the Core PPI by 0.1% month-over-month, coming in below expectations, while the year-over-year PPI stood at 3.2%, slightly under forecasts. Barclays revised its U.S. GDP growth estimate for 2025 to 0.7% and raised its inflation forecast to 3.2%, predicting two Federal Reserve rate cuts in the same year. Additionally, the U.S. 30-year fixed mortgage rates slightly increased to 6.65% for the week of March 13. These developments suggest ongoing economic adjustments and considerations for monetary policy.

Ask Aime: What is the potential impact of the Federal Reserve's rate cut speculation on the U.S. stock market indices, and how might this affect long-term economic stability?