Stock market today: Dow, S&P 500, Nasdaq slump as Wall Street grapples with Fed’s message

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Updated Fri, Mar 21, 2025, 11:00 AM 1 min read

Most of their gains came as Wall Street rallied following the Fed’s decision on Wednesday, buoyed by the central bank staying the course for two more rate cuts this year. Chair Jerome Powell also reassured investors that the economic impact of Trump’s trade war seemed manageable, adding that recession risks remain low.

However, by Thursday, the underbelly of the Fed’s decision started to weigh on Wall Street, sending stocks lower. The central bank had updated its projections to reflect higher inflation and lower economic growth, two concerns that have deeply rattled markets as more tariffs loom.

The next major deadline for Trump’s trade policy is less than two weeks away. Trump has given himself broad leeway to negotiate with countries in the meantime, adding to Wall Street’s sense that despite some reassurances this week, only more uncertainty lies ahead. But on social media Friday, he hyped up what he is referring to as “Liberation Day.”

More companies are saying they are feeling the effects. FedEx (FDX) and Nike (NKE) stocks plummeted early Friday as investors reacted to fresh concerns over tariffs and economic uncertainty. FedEx shares dropped after the company slashed its fiscal 2025 forecast, fueling fears about slowing industrial demand.

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3 of Goldman Sachs’ best investing tips for currently volatile markets

Yahoo Finance’s Brian Sozzi reports:

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Fed’s Williams: ‘Uncertainty is high’ amid shifting US economic policies

Yahoo Finance Jennifer Schonberger reports:

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Why a recession could actually be good for the housing market

As recession fears grow, many wonder how the housing market will react. While economic downturns bring uncertainty, history shows that the housing market can be robust.

A new analysis from First American reveals that past recessions don’t always spell doom for real estate. For instance, during the pandemic in 2020, home sales initially dropped due to the economic shutdown but quickly recovered due to record-low mortgage and strong demand.

The housing market’s performance depends on the causes of the recession and the Federal Reserve’s actions. The Fed typically lowers interest rates to stimulate growth, resulting in mortgage rates often declining, boosting house-buying power.

This week, the Fed held interest rates steady and maintained its stance on two rate cuts later this year. Mortgage rates have drifted lower from their higher of 7% but stagnated around 6.6%. This is partly due to the growing uncertainty over the potential impact of President Trump’s tariff policies.

“While recession fears loom, housing has proven resilient in past downturns. Rather than assuming a market crash, history suggests that lower mortgage rates could help support the housing market, just as they have in previous recessions,” First American economist Odeta Kushi wrote in a note to clients.
Why one of Wall Street’s biggest Tesla bulls is getting cautious

Yahoo Finance’s Brian Sozzi reports:

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Stocks pull back, S&P 500, Nasdaq attempt to snap 4-week losing streak

US stocks pulled back on Friday as two big consumer bellwether stocks dropped to cap a volatile week.

The Dow Jones Industrial Average (^DJI) dipped 0.8%, while the S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) fell about 1%.

The S&P 500 and Nasdaq, both of which entered into correction territory recently, were trying to snap a four-week losing streak. Both major averages rallied earlier this week following the Federal Reserve’s rate policy meeting.

Investors await Trump’s trade policy less than two weeks away for more potential market catalysts. FedEx (FDX) and Nike (NKE) stocks fell on Friday on the heels of their quarterly results in reaction to tariff concerns and uncertainty.
London Heathrow shuts down after nearby fire, airline stocks slide premarket

London Heathrow Airport halted operations Friday due to a power outage caused by a nearby fire, stranding tens of thousands of passengers. Europe’s busiest airport will be closed all day in the largest disruption for the airport in two decades, Bloomberg reports.

Shares of British Airways parent International Consolidated Airlines Group (IAG.MC) and Air France-KLM (AF.PA) fell 1.5%, while Lufthansa stock (LHA.DE) dropped 1.3%.

Shares of US carriers Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL), which operate at Heathrow, also fell slightly in sympathy.

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Hard data still trumps vibes

Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief:

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Good morning. Here’s what’s happening today.
The one line from FedEx’s earnings that should worry bulls

Similar to Nike’s (NKE) stock this morning, large-cap play FedEx (FDX) is getting run over premarket by 7%.

And similar to what Nike said on its earnings call about the macroeconomic backdrop being uncertain, FedEx CEO Raj Subramaniam offered this assessment:

“The current environment, however, is adding uncertainty to demand. We continue to work closely with our customers to help them adapt to this evolving market,” Subramaniam said.

The best the bulls can hope for is that early earnings reports like this (and the airlines two weeks ago) sound the alarm bells loud enough on demand, and their stocks get hit, leading to the bad macro news being priced in when earnings season kicks off broadly in late April.

Don’t underestimate a trade war, friends.
Why Nike’s stock has reversed

It looked like Nike (NKE) was going to get off easy last night with its earnings report.

The Street likes new CEO Elliott Hill and how fast he is moving to reset the company. Shares initially popped 5% after the numbers crossed the wires.

This morning, the stock is down 5% despite a lot of Wall Street cheerleading in various notes.

But investors were hit with a cold splash of reality on the earnings call: A big ship in Nike doesn’t turn overnight, especially against the backdrop of a global trade war.

The focus appears to be on Nike’s guidance for the current quarter for sales down by a mid-teens percentage, which came in worse than estimates. Margins will also be under pressure again due to tariffs and aggressive discounting to clear slow-selling styles.

All in, I dig what Hill is doing. it will just take a lot of time before it shows up in a quarter.
Chinese stocks extend Hong Kong losses in two-day drop

Chinese stocks dropped on Friday after a week of losses partially undoing a phenomenal rally driven by the Asian tech sector. Investor expectations are high with little to continue to fuel rocketing demand.

Bloomberg reports:

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