S&P500

Markt update on March 14

Snapshot of benchmark US stock indices on Thursday:

• Dow -1.3%,
• NASDAQ -2%,
• S&P 500 -1.4%,
• S&P 500 at 5,521, range 5,400 - 6,000

The stock market continued its downtrend today after a brief pause yesterday. The S&P 500 (-1.4%) and Nasdaq Composite (-2.0%) had another sharp drop on Thursday.

The indices lost yesterday's gains and fell further, with the S&P 500 closing in correction territory (i.e., 10% below its historical peak from February 19). The Nasdaq Composite moved deeper into correction territory.

Positive economic reports were published on Thursday morning, but stocks didn't react with gains. The February Producer Price Index (PPI) showed some numbers lower than expected, and weekly jobless claims remained relatively low.

The understanding that the new US administration's trade policy could negatively impact inflation in the future overshadowed the positive reports. President Donald Trump announced a potential 200% tariff on European alcohol imports, including wine and spirits. This move was made in response to the European Union's recent 50% tariffs on American whiskey—counteracting Trump's new tariffs, which intensified concerns about a prolonged trade war that could hinder global economic growth.

The negative sentiment in stocks was also linked to some corporate news. Disappointing results from Adobe (ADBE 377.84, -60.76, -13.9%), as well as gloomy forecasts from SentinelOne (S 18.23, -1.07, -5.5%) and UiPath (PATH 9.97, -1.86, -15.7%) pressured growth stocks.

The Russell 3000 growth index fell by 2.2%.

Treasury bonds closed higher in response to the morning data. The 10-year bond yield closed four basis points lower at 4.27%, and the 2-year bond yield closed four basis points lower at 3.95%. Consequently, the US Treasury wrapped up a weak bond auction and weak reopening of 30-year bonds this week.

Year-to-date performance:

• Dow Jones Industrial Average: -4.1%
• S&P 500: -6.1%
• S&P Midcap 400: -8.4%
• Nasdaq Composite: -10.4%
• Russell 2000: -10.6%
• February PPI: 0.0% (consensus: 0.3%); previous revised from 0.4% to 0.6%
• February Core PPI: -0.1% (consensus: 0.3%); previous revised from 0.3% to 0.5%
• Weekly initial jobless claims: 220K (Consensus: 228K); previous revised from 221K to 222K, continuing claims: 1.87 million, previous: 1.897 million.
• 10:00 AM ET: preliminary University of Michigan Consumer Sentiment Index for March (consensus: 65.6; previous: 64.7)

Economic calendar on Thursday

The main takeaway from the report aligns with the core conclusion from the CPI report: wholesale inflation, though decreasing, is still too high, and with escalating tariff battles, there are concerns that disinflation may not be sustained.

The key takeaway from the report is that initial jobless claims—a leading indicator—remain stable at relatively low levels, which reflects a generally healthy labor market.

Economic calendar on Friday includes:

Energy:

Brent oil is now trading at $70.40 per barrel. Oil remains slightly above $70 despite the new US market decline.

Gold almost reached a new historical high of $3,000 per ounce.

Conclusion

The stock US market showed weakness again, but the US economy remains relatively strong. The stock market suggests buying opportunities.