Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
March 31st, 2025
Watch Time: 2.8 min.
Welcome to this week’s Market Drama!
Stock Market Update:
- S&P 500: Down 1.5% for the week.
- Nasdaq: Down 2.6% for the week, now down 10% YTD.
- Strong Start: Markets rallied nearly 2% on Monday, boosted by optimism that upcoming tariff announcements might be less severe.
- Sharp Reversal:
- Thursday: White House announced auto tariffs, earlier and harsher than expected, triggering a sell-off.
- Friday: Sell-off continued on rising inflation concerns.
- PCE Inflation (Feb):
- Came in at 2.8%, above the 2.7% forecast.
- Hotter inflation reduces the Fed’s flexibility to cut rates if economic growth slows.
- Tariff Policy Uncertainty:
- Full details expected April 2nd, but early moves on auto tariffs have already unsettled markets.
- Economic Policy Uncertainty Index:
- 3-month average at highs not seen since early pandemic (2020) levels.
- Reflects elevated concern around U.S. trade and economic direction.
Next Week:
- Payroll Numbers
- Beginning of Earnings Season
Stay tuned for next week.
– Andres
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