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US stocks slipped on Thursday, failing to build on a Wednesday rally fueled by reassuring signals from Federal Reserve Chair Jerome Powell after the central bank held interest rates steady.
The Nasdaq Composite (^IXIC) fell about 0.3%, while the S&P 500 (^GSPC) declined by 0.2% and the Dow Jones Industrial Average (^DJI) ended the session just below the flat line. All three major averages saw gains earlier in the trading day before ultimately losing steam.
DJI – Delayed Quote USD
^DJI ^GSPC ^IXIC
The Fed’s decision to keep interest rates unchanged on Wednesday was expected on Wall Street, but markets rallied, driven by a sense of relief that prior forecasts for two rate cuts this year held up. Doubts had been rising about the path to rate cuts amid concerns the US economy might buckle under President Trump’s broad plans for tariffs.
Read more: The latest on Trump’s tariffs
In a press conference following the decision, Powell contributed to the good mood. Although the central bank indicated it expects higher inflation and slower economic growth, the Fed chair reassured investors that inflation impacts from tariffs will likely be “transitory” and recession risks remain low.
But Powell’s comments came after the Fed, in updated projections, revised upward its forecast for inflation at the end of this year while sharply lowering its forecast for economic growth. Those broader economic sentiments have been weighing on markets for much of the past two months, with both the benchmark S&P 500 and tech-heavy Nasdaq sliding into correction territory.
For his part, Trump — who has largely refrained from weighing in on Fed policy thus far in a U-turn from his first term — looked set to amp up pressure on the central bank.
“The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” he posted on social media late Wednesday.
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Stocks fail to build on Fed-fueled rally
US stocks fell across the board on Thursday after a brief Fed-induced rally following the central bank’s decision to hold interest rates steady.
The Nasdaq Composite (^IXIC) fell about 0.3%, while the S&P 500 (^GSPC) declined by 0.2% and the Dow Jones Industrial Average (^DJI) ended the session just below the flat line. All three major averages saw gains earlier in the trading day before ultimately losing steam.
Nasdaq GIDS – Delayed Quote USD
^IXIC ^GSPC ^DJI
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Nearly all ‘Magnificent 7’ players off around 20% from 52-week highs
The recently dubbed “Lag Seven” players are once again… lagging.
After a brief comeback on Wednesday, fueled by the Federal Reserve, most of the major tech giants lost steam by late Thursday trading. The exceptions: Nvidia (NVDA) and Meta (META), which each rose a modest 0.8% and 0.7%, respectively, with less than twenty minutes left until the closing bell.
Still, nearly all of the “Magnificent Seven” stocks are off by about 20% from their 52-week highs as risk-off sentiment pervades markets on the heels of greater policy and Fed uncertainties. Tesla (TSLA) is off more than 50%.
“With this uncertainty perhaps persisting, I don’t think this is the time to look for home runs and make big risk bets, particularly before April 2nd,” Michael Kantrowitz, chief investment strategist at Piper Sandler, told Yahoo Finance on Thursday.
“I do think maybe if there are really higher quality names that offer some stability, that’s the type of stuff that we’ve been recommending in this volatile backdrop, and we think we’re going to have quite a bit of volatility.”
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Apple is reportedly losing $1 billion a year on its streaming service
Apple’s (AAPL) streaming platform is losing a reported $1 billion a year as the company faces stiff competition and a more choosy consumer.
According to a report in the Information, Apple — which just shed around $700 billion as a result of Wall Street’s latest tech rout — has consistently spent over $5 billion annually to beef up its content slate since launching in 2019. That number, though, dramatically decreased to just about $500 million last year, the report said.
Apple did not immediately respond to Yahoo Finance’s request for comment.
The update comes as many media giants have pulled back on spending in favor of profitability. More streaming platforms are cracking down on password sharers and have also bundled their respective offerings to prevent churn, or users abandoning their subscription plans.
It’s unclear whether the recent bundles are helping. According to data compiled by subscription analytics platform Antenna, Apple’s streaming service had the highest churn percentage of all the major streaming platforms, with the exclusion of Starz, with 7% of users churning out of the service during the month of February, compared to just 2% of users for Netflix and 4% of users for Disney+.
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One Tesla bull says Musk needs to ‘change course’
Yahoo Finance’s Pras Subramanian reports:
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Mortgage rates remain near 6.7% as Fed flags growing economic uncertainty
Yahoo Finance’s Claire Boston reports:
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AI software company CoreWeave announces IPO plans
CoreWeave, an artificial intelligence cloud-computing provider, has begun its roadshow for a proposed initial public offering (IPO).
The company expects its IPO price to be in a range of $47 to $55 per share. At the high end of that range, CoreWeave would have a value of $26 billion.
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Short sellers have made $15 billion betting against Tesla and Nvidia in 2025
While many stocks are rallying on Thursday, short sellers have been cleaning up to start 2025 amid a massive sell-off in some of the market’s most popular names over the past two years.
Short sellers have made a combined $15 billion betting against Nvidia (NVDA) and Tesla (TSLA) so far this year, according to data from S3 Partners. Tesla shorts alone have raked in more than $10 billion.
A large decline in Tesla stock, as investors have grown concerned about CEO Elon Musk’s focus on government efficiency rather than his electric vehicle maker, has led the “Magnificent Seven” declines this year. The stock is down about 40% year to date.
But it hasn’t just been Tesla and Nvidia lagging. The entire group of “Magnificent Seven” stocks — which also includes Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), and Meta (META) — is underperforming the S&P 500 this quarter by the most since 2022.
Short sellers have profited from all of the cohort’s names this year, making nearly $5 billion betting against Apple stock, which is down nearly 14% this year.
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‘Magnificent Seven’ names lead stock rebound
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Existing home sales rise in February amid increased inventory and steady mortgage rates
Sales of existing homes rose in February as more inventory became available, offering buyers more choices.
Existing home sales increased 4.2% in February to a seasonally adjusted annual rate of 4.26 million, according to the National Association of Realtors. Economists polled by Bloomberg expected existing home sales to hit a pace of 3.95 million in February.
Sales are still 1.2% lower than a year ago, however.
“Home buyers are slowly entering the market,” NAR chief economist Lawrence Yun said in the press release. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
Total housing inventory reached 1.24 million units at the end of February, 5.1% higher than in January and 17% from one year ago.
Some house hunters remain undecided about buying a home as mortgage rates have barely moved at 6.6%. In fact, separate data shows total mortgage application volume dropped 6.2% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The median home sale price hit a record high, rising 3.8% from a year ago to $398,400. This marks the 20th consecutive month of year-over-year price increases.
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Stocks open lower after Wednesday’s rally
US stocks moved lower on Thursday, failing to build on a Wednesday rally fueled by reassuring signals from Federal Reserve Chair Jerome Powell after the central bank held interest rates steady on Wednesday.
The Nasdaq Composite (^IXIC) led the losses, falling about 1%, while the Dow Jones Industrial Average (^DJI) dropped 250 points, or 0.6%, and the S&P 500 (^GSPC) shed 0.7%
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A $4.5 trillion triple witching gives investors yet another test
Four times a year, a set of options contracts simultaneously expire in an event known as a “triple witching,” which often stokes volatility. The first triple witching of 2025 will take place on Friday.
Bloomberg reports:
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Weekly jobless claims steady in March
Data from the Department of Labor released Thursday morning showed 223,000 initial jobless claims were filed in the week ending March 15, down from 221,000 the week prior and roughly in line with 224,000 economists had expected.
Meanwhile, 1.89 million continuing unemployment claims were filed, up from 1.86 million the week prior. Continuing claims have hovered near a more-than-three-year high for several months now as economists have noted laid-off workers are taking longer to find new jobs.
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Trump starts to turn up the pressure on the Fed
President Trump — who has largely refrained from weighing in on Fed policy so far — seemed to amp up the pressure on the central bank after it held interest rates steady for the second consecutive meeting on Wednesday.
Yahoo Finance’s Ben Werschkul and Jennifer Schonberger report:
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Why this Wall Street analyst still thinks Tesla stock could nearly rise 90%
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Europe stocks fall after ECB says tariffs would lift inflation, weigh on growth
European stocks fell across the board after European Central Bank President Christine Lagarde stated that a 25% tariff on goods imported to the US could raise inflation and lower growth in the bloc.
“In the near term, EU retaliatory measures and a weaker euro exchange rate…could lift inflation by around half a percentage point,” Lagarde told European lawmakers, per Reuters. “The effect would ease in the medium term due to lower economic activity dampening inflationary pressures.”
The pan-European Stoxx 600 (^STOXX) fell 0.7%, while Germany’s DAX (^GDAXI) dropped 1.5%. The CAC (^FCHI) in Paris was 1% lower.
And in London, the benchmark index (^FTSE) was roughly flat as traders awaited the next interest rate decision from the Bank of England, which is expected to hold rates steady.
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Good morning. Here’s what’s happening today.
Economic data: Initial jobless claims (week ending March 15); Philadelphia Business Outlook (March); Leading index (February) Existing home sales (February)
Earnings: Academy Sports and Outdoors (ASO), Darden Restaurants (DRI), FedEx (FDX), Land’s End (LE), Lennar (LEN), Micron (MU), Nike (NKE)
Here are some of the biggest stories you may have missed overnight and early this morning:
The Fed—and economy—can still afford to wait amid tariff uncertainty
Why one analyst is betting on a 90% Tesla rally
Some retirees to get a bump in Social Security benefits next month
Nvidia’s winning formula: Fail fast, innovate faster
SoftBank Group to acquire Ampere Computing in $6.5 billion deal
Lagarde: US tariffs could shrink eurozone growth, spike inflation
Stanford, Harvard grads seek China AI startup jobs
TSMC risks losing lead over Tencent as Asia’s largest company
Copper hits $10,000 in rally fueled by Trump’s tariff threats
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Gold rises to new record high on Fed rate cut news
Gold (GC=F) reached a new all-time high Thursday as the Federal Reserve raised the potential for two interest rate cuts this year, boosting bullion’s appeal as a haven asset.
Reuters reports:
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Copper breaches $10,000 benchmark in tariff push
Copper (HG=F) surged past the $10,000-per-ton mark after weeks of global trade disruptions caused by President Donald Trump’s tariffs pushed prices on the industrial metal.
Bloomberg reports:
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SoftBank Group buys out Oracle and Carlyle Group in $6.5 billion for Ampere Computing
SoftBank Group Corp has announced plans on Wednesday to acquire AI-focused chip startup Ampere Computing in a $6.5 billion deal.
Reuters reports:
