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

Market BriefThursday, Mar 13, 2025 8:37 pm ET
1min read

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?

Comments

Post
Smart-Material-4832
03/14
$TTD my thoughts on this stock... Someone is likely manipulating the market to buy more at a lower price. The reason could be that advertising on streaming services is growing fast... I've noticed more ads this year, and they're longer too, up to 90 seconds on some platforms. TTD has deals with big players like Netflix, Hulu, Pandora, and Spotify, and they even have a presence in China. If their AI does well, they could be a major player in this space. It could be as big as Netflix or Facebook by 2022. Someone is taking advantage of the current market and the low number of retail investors in this stock. Being a growth stock and missing earnings reports, it should be in the 70s. Bringing it below 60 is clearly manipulation.
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Ditty-Bop
03/14
Barclays sees two rate cuts. Are we heading to easy money mode or just a quick dip?
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MasterDeath
03/14
@Ditty-Bop Do you think rate cuts will boost stocks?
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EL-Vinci93
03/14
Rate cuts incoming, load up on tech stocks
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Historical_Hearing76
03/14
Fed's playing chess while markets play checkers. Rate cuts might be a game-changer.
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lookingforfinaltix
03/14
Barclays sees dip, but I'm bullish on $AAPL
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Quiet_Maybe7304
03/14
Fed's next move: circus or relief? 🤔
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ContentSort1597
03/14
Rate cuts on the horizon? Fed's playing chess while markets play checkers. 🤔
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pd14200
03/14
Regencell mooning, bag holders' dream come true. 🤑
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Fountainheadusa
03/14
Regencell's 235% surge is wild. Biotech's always a rollercoaster, but that's what makes it exciting. 💸
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serenity561
03/14
TSMC dip? Buy the fear, profit later
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Liteboyy
03/14
Tech underperforming? Maybe it's time to look at value stocks for some balance.
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Protect_your_2a
03/14
@Liteboyy What about sectors like finance?
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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