The 'clouds' weighing down the market aren't going anywhere: Chart of the Week

Published On Mar 8, 2025, 7:45 AM

The stock market is facing significant volatility, primarily driven by economic uncertainties stemming from proposed tariffs by President Trump. Recently, both the S&P 500 and Nasdaq Compounded experienced their worst weeks in six months, with the S&P 500 down 6% from its recent all-time high. Analysts suggest that current investor sentiment is cautious, and while some strong economic data, like the jobs report, fails to instill confidence, the markets have continued to see large swings in trading values. Questions remain about the sustainability of economic growth and what impact potential future Federal Reserve interest rate cuts might have on the market's trajectory.

Stock Forecasts

SPY

Negative

Given the ongoing volatility and uncertainty in economic data, particularly surrounding tariffs and interest rates, the outlook remains pessimistic for the short term. Investors seem hesitant to commit, causing fluctuations in stock values.

QQQ

Negative

With the Nasdaq already in correction territory and ongoing economic pressures, traders should be cautious about tech stocks, which often respond sharply to changes in market sentiment and economic news.

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