Market News 9 MAR
Key Events and Trends of the Week
Despite a challenging start to the week, the stock market closed on a positive note. Major indices showed upward momentum: S&P 500 gained 0.6%, Dow Jones Industrial Average rose by 0.5%, and Nasdaq Composite climbed 0.7%. Investors seized the opportunity to buy assets after a significant decline in previous sessions.
A key technical factor in the rebound was S&P 500 testing its 200-day moving average (5733), attracting buyer interest. The semiconductor sector led the rally, largely driven by Broadcom (AVGO), whose stock surged by 8.6% following strong quarterly results.
Labor Market and Fed Expectations
Economic data provided mixed signals. Nonfarm payrolls for February came in at 151K, below analysts' forecast of 159K. The U6 unemployment rate increased to 8.0%, the highest level since 2021. Despite this, the stock market did not experience significant downward pressure.
Federal Reserve Chairman Jerome Powell noted improvements in productivity, suggesting higher potential economic output. However, he emphasized that there is no urgent need to adjust monetary policy at this time.
Trade Conflicts and Cryptocurrencies
U.S. President Donald Trump announced potential retaliatory tariffs on Canadian goods, including dairy and lumber. This move could further strain trade relations between the two countries and impact several industries.
Additionally, Trump introduced a Strategic Bitcoin Reserve, underscoring the U.S. ambition to become a global leader in cryptocurrencies. This announcement elicited mixed reactions from market participants, while Bitcoin (BTC-USD) experienced significant volatility throughout the week.
Semiconductors and Artificial Intelligence
Nvidia (NVDA) lost its $3 trillion market capitalization status. Shares have dropped 20% year-to-date amid growing competition from Chinese AI startups and escalating U.S.-China tech tensions.
Elon Musk's xAI startup is expanding its infrastructure by acquiring a large facility in Memphis, designed to house 100,000 Nvidia H100 GPUs.
U.S. semiconductor firms are urging a unified strategy with global allies to counter China's influence in the chip market.
Mergers, Deals, and Financial Performance
Walgreens (WBA) has agreed to sell assets worth $10 billion to investment firm Sycamore Partners. This move makes CVS Health (CVS) the only publicly traded pharmacy chain in the U.S.
Oracle (ORCL) expects 8% revenue growth in Q3, largely due to the Stargate project in collaboration with Nvidia and OpenAI.
Anysphere, a programming-focused startup, is approaching a $10 billion valuation, backed by major venture capital firms such as Thrive Capital and Andreessen Horowitz.
The past week demonstrated the resilience of the stock market, despite macroeconomic and political risks. The semiconductor sector continues to drive growth, while artificial intelligence remains a major investment magnet.
Next week, investors will focus on new inflation data and Federal Reserve commentary, which could influence market direction. Trade policies and developments in the tech sector also remain key areas of interest.