{"id":24646,"date":"2025-03-05T15:09:00","date_gmt":"2025-03-05T21:09:00","guid":{"rendered":"https:\/\/www.eoption.com\/market-review-march-05-2025\/"},"modified":"2025-03-05T15:09:00","modified_gmt":"2025-03-05T21:09:00","slug":"market-review-march-05-2025","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/market-review-march-05-2025\/","title":{"rendered":"Market Review: March 05, 2025"},"content":{"rendered":"\n
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Closing Recap<\/span><\/b><\/p>\n

Wednesday, March 05, 2025<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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485.36<\/span><\/p>\n<\/td>\n

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1.14%<\/span><\/p>\n<\/td>\n

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43,006<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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8.93<\/span><\/p>\n<\/td>\n

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0.16%<\/span><\/p>\n<\/td>\n

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5,769<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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46.67<\/span><\/p>\n<\/td>\n

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0.25%<\/span><\/p>\n<\/td>\n

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18,239<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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21.22<\/span><\/p>\n<\/td>\n

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1.02%<\/span><\/p>\n<\/td>\n

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2,100<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stocks got a late morning boost that carried into the afternoon as stocks erased a 2-day losing streak, with major averages bouncing off key technical levels as investors applaud news the White House gives the big three automakers (Ford, GM<\/span>, STLA<\/span>) a 1-month tariff exemption, which helped boost market sentiment and optimism.  Materials (XLB<\/span>) were the biggest S<\/span>&P sector gainers, led by chemicals and metals on China headlines overnight, while Energy (XLE<\/span>) was the biggest drag in the S&P as oil prices hit multi-year lows. Technology stocks bounce but remain among the biggest drags in the S&P in 2025 (-4.8% YTD<\/span>) after the Nasdaq Composite teetered around correction territory on Tuesday, down 10% from a recent high. Not only that, but the Nasdaq also extended a decline below its 200-day moving average (of 18,385) this afternoon before reclaiming, while QQQ<\/span>’s also dipped below its 200dma of $492.40 before moving back above. <\/p>\n

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While US<\/span> markets were active today on more data and tariff headlines, the big moves came in Europe and Asia following a massive shift in German fiscal policy and China announcing new measures. In Europe, the German DAX<\/span> is surging 725 points or 3.24% to 23,051 back to record highs as the parties hoping to form Germany’s next government on Tuesday agreed to create a 500-billion-euro infrastructure fund and overhaul borrowing rules (sending bunds lower and boosting yields in biggest one day move in over 30-years). In China, the country State Planner said they still have room for implementing stronger macro policies; and sets 2025 GDP target at about 5% and 2025 CPI<\/span> target at 2% though notes achieving GDP target of around 5% will be no easy task; China will facilitate breakthroughs in areas like VR<\/span>, advanced computing and RISC<\/span>–V<\/span>; said will lower banks’ RRR<\/span> and interest rates at right timing.<\/p>\n

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Regarding tariffs with Canada\/Mexico: Donald Trump tweeted on Truth Social this afternoon noting: “Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I<\/span> told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped. He said that it’s gotten better, but I<\/span> said, “That’s not good enough.” The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I<\/span> then realized he is trying to use this issue to stay in power. Good luck Justin!”<\/p>\n

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Some highlights from last night’s President Trump speech to Congress: stated that tariffs will create disturbance and will require a period of adjustment; said he was looking to repeal the $52B Chips Act; he reiterated 25% tariffs for aluminium, copper, steel; also confirmed reciprocal tariffs for other countries starting on April 2nd; announced he was creating a new office for ship building in the White House with new tax incentives; spoke with top three automakers on Tuesday; wants to make interest payments on car loans tax deductible if made in US<\/span>.<\/p>\n

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Lastly the Fed Beige Book was released showing contacts in most districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively. It showed prices increased moderately in most districts, but several districts reported an uptick in the pace of increase relative to the previous reporting period. Overall economic activity climbed slightly since mid-January and overall expectations for economic activity over the coming months were slightly optimistic. Eight Fed districts reported flat or slightly negative growth.<\/p>\n

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Economic Data<\/p>\n

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  • U.S. ISM Non-Manufacturing services sector growth unexpectedly picked up in February, rising to 53.5 from 52.8 in January and was above the 52.6 economist estimate; the ISM survey’s new orders measure rose to 52.2 last month from 51.3 in January, while prices paid for services inputs to 62.6 from 60.4 in January. The ISM reported on Monday that its measure of prices paid by factories jumped to nearly a three-year high in February.<\/li>\n<\/ul>\n<\/div>\n
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    • Private payroll data disappoints as the U.S ADP nonfarm employment change for February reported at +77k, below the prior month reading o +183k previous and economist estimates of +140k.<\/li>\n
    • January Factory Orders rose +1.7% vs. consensus +1.6% and vs Dec -0.6%, while Jan Factory Orders ex-transportation +0.2% vs Dec +0.3%, Jan factory orders ex-defense +1.8% vs Dec -0.6%, Jan non-defense cap orders ex-aircraft unrevised at +0.8%; Jan shipments unrevised at -0.3%.<\/li>\n
    • US S&P Global Feb. Composite PMI at 51.6 vs 52.7 prior.<\/li>\n
    • US Mortgage Bankers Assoc reported US mortgage market applications index rose +20.4% in the latest week; purchase index climbs 9.1%, refinance index soars to 784.2 as the average 30-year mortgage rate falls 15 bps to 6.73% in Feb 28 week, lowest since Dec 2024.<\/li>\n<\/ul>\n
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      Commodities<\/p>\n

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      • Oil markets tumbled further as WTI crude oil declined to its lowest level since May 2023 and Brent crude crashes to 2021 lows after surprise weekly U.S. inventory build. WTI crude fell -$1.95 or 2.86% to settle at $66.31 per barrel while Brent crude declined -$1.74 or 2.45% to settle at $69.30 per barrel. The fall in international oil prices continued today, with Brent joining WTI in trading below $70 a barrel, falling a 3rd<\/sup> day as investors worried about OPEC+ plans to proceed with output increases in April, and U.S. President Donald Trump’s tariffs on trade partners. Oil prices extended their losses after weekly EIA inventory data showed crude +3.614mm barrel build (5th<\/sup> rise in 6-weeks), Cushing +1.124mm barrel build (4th<\/sup> straight week) with draws for Gasoline and Distillates.<\/li>\n<\/ul>\n<\/div>\n