US close: Early gains erased as Fed-fuelled optimism fades
By Benjamin Chiou
Date: Thursday 20 Mar 2025
(Sharecast News) - US stock markets finished a volatile session with small losses on Thursday, with indices struggling for direction for most of the day in the aftermath of the Federal Reserve policy meeting.
The Dow finished more or less flat, while the S&P 500 fell 0.2% and the Nasdaq lost 0.3%.
It was a tumultuous day for stocks, with futures falling sharply before the opening bell before recovering by mid-morning and then slumping once again in late-afternoon trade.
Commenting on the pre-market losses earlier on, David Morrison, senior market analyst at Trade Nation said: "Perhaps it simply indicates skittishness amongst traders. There's currently a high level of uncertainty prevalent amongst market participants due to all the complex geopolitical factors currently at play, together with the mercurial nature of the Trump administration."
FOMC aftermath
Stocks rose strongly on Wednesday on the back of comments by Fed chair Jerome Powell. While the Fed left interest rates on hold, as expected, Powell said that a predicted increase in inflation - due to an escalating trade war - would likely only be "transitory", with the dot plot still pointing to two interest-rate cuts this year.
The Federal Open Market Committee did, however, lower its growth projections and raise its forecasts for inflation amid increased economic uncertainty.
"Great uncertainty remains over the direction of travel for the US economy, with business activity likely to remain subdued until we see greater clarity over the trade relationships and potential pricing for US imports and exports. Nonetheless, the Fed stand ready to act where necessary," said Joshua Mahony, chief market analyst at Scope Markets.
A series of economic indicators met or beat forecasts on Thursday: jobless claims rose by just 2,000 last week, more or less hitting consensus estimates; the Philly Fed manufacturing index fell to 12.5 from 18.1 but topped the 8.5 forecast; while existing home sales bounced back 4.2% to 4.26m in February after falling 4.7% the previous month, comfortably beating the 3.95m expected.
A surge in oil prices was likely also weighing on investors' minds, with WTI crude up 1.7% at $68.30 a barrel amid heightened geopolitical tensions. Meanwhile, safe-haven demand was helping the price of gold, with Comex futures up 0.3% at $3,051.60 an ounce, as bullion continues to climb to new heights.
Market movers
Shares in Accenture slumped 7% after the consultancy group said that a crackdown on US federal spending - led by Elon Musk's DOGE initiative - was weighing on revenues.
Tesla finished slightly up despite the news that the electric vehicle maker is having to recall more than 46,000 Cybertrucks to fix a problem with an exterior trim panel.
Cosmetics giant Coty was bolstered by an upgrade from Citi to 'buy', while used-car platform Carvana was lifted by a upgrade by Piper Sandler to 'overweight'; Stellantis on the other hand fell after Piper Sandler cut the carmaker to 'neutral'.
Data storage firm Micron Technology edged higher ahead of its earnings report due out after the close, while sporting goods giant Nike and logistics group FedEx both declined before their quarterly figures were released.
Dow Jones - Risers
Unitedhealth Group Inc. (UNH) $511.30 1.61%
Goldman Sachs Group Inc. (GS) $562.68 0.96%
Merck & Co. Inc. (MRK) $94.73 0.76%
Coca-Cola Co. (KO) $69.71 0.62%
Home Depot Inc. (HD) $355.52 0.59%
Chevron Corp. (CVX) $164.77 0.44%
Boeing Co. (BA) $172.83 0.12%
American Express Co. (AXP) $270.83 0.07%
McDonald's Corp. (MCD) $307.00 0.03%
Johnson & Johnson (JNJ) $163.02 0.02%
Dow Jones - Fallers
International Business Machines Corporation (CDI) (IBM) $243.32 -3.56%
Dow Chemical Co. (DOW) $36.61 -1.56%
Nike Inc. (NKE) $71.86 -1.55%
Walt Disney Co. (DIS) $98.86 -1.43%
3M Co. (MMM) $151.27 -1.27%
Cisco Systems Inc. (CSCO) $60.62 -0.82%
Caterpillar Inc. (CAT) $336.25 -0.70%
Travelers Company Inc. (TRV) $259.54 -0.68%
Intel Corp. (INTC) $23.96 -0.66%
Procter & Gamble Co. (PG) $167.55 -0.61%
S&P 500 - Risers
Darden Restaurants Inc. (DRI) $199.01 5.77%
Charter Communications Inc. (CHTR) $362.58 2.71%
Allstate Corp (The) (ALL) $210.18 2.59%
Gallagher Arthur J (AJG) $334.44 2.39%
Perrigo Company plc (PRGO) $28.49 2.19%
Advance Auto Parts (AAP) $37.64 1.95%
Southwest Airlines Co. (LUV) $34.15 1.64%
Coty Inc. Class A (COTY) $5.63 1.62%
Unitedhealth Group Inc. (UNH) $511.30 1.61%
Align Technology Inc. (ALGN) $168.81 1.61%
S&P 500 - Fallers
Accenture Plc (ACN) $300.91 -7.26%
Gartner Inc. (IT) $418.77 -6.82%
Microchip Technology Inc. (MCHP) $51.00 -6.54%
International Business Machines Corporation (CDI) (IBM) $243.32 -3.56%
Raymond James Fin Corp. (RJF) $141.73 -3.20%
Albemarle Corp. (ALB) $77.03 -3.09%
Genuine Parts Co. (GPC) $120.74 -3.09%
Cognizant Technology Solutions Corp. (CTSH) $77.21 -3.08%
Foot Locker Inc. (FL) $16.05 -2.96%
Revvity, Inc. (RVTY) $106.98 -2.67%
Nasdaq 100 - Risers
Charter Communications Inc. (CHTR) $362.58 2.71%
Align Technology Inc. (ALGN) $168.81 1.61%
Comcast Corp. (CMCSA) $36.50 1.14%
Micron Technology Inc. (MU) $103.00 0.92%
Electronic Arts Inc. (EA) $143.25 0.90%
Nvidia Corp. (NVDA) $118.53 0.86%
Fiserv Inc. (FI) $221.79 0.65%
Dollar Tree Inc (DLTR) $64.59 0.45%
Adobe Systems Inc. (ADBE) $389.61 0.44%
Incyte Corp. (INCY) $60.58 0.40%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.17 -8.06%
Microchip Technology Inc. (MCHP) $51.00 -6.54%
JD.com, Inc. (JD) $42.98 -4.13%
Baidu Inc. (BIDU) $94.27 -4.04%
Trip.com Group Limited (TCOM) $64.53 -3.69%
Cognizant Technology Solutions Corp. (CTSH) $77.21 -3.08%
Broadcom Inc. (AVGO) $190.54 -2.57%
Skyworks Solutions Inc. (SWKS) $68.39 -2.37%
Wynn Resorts Ltd. (WYNN) $83.07 -2.32%
Analog Devices Inc. (ADI) $205.90 -1.94%
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