Stock Market Today, March 20: S&P 500 Drops for Third Day, Fourth Week in a Row

The S&P 500 (^GSPC 1.51%) fell 1.50% to 6,507.49, the Nasdaq Composite slid 1.98% to 21,653.71, and the Dow Jones Industrial Average lost 0.96% to 45,577.46 as war‑driven oil volatility, rising yields, and record options expiration fueled broad risk‑off trading.

Market movers

Nike hit a fresh 52‑week low near $52 amid a “challenging market environment,” weighing on consumer discretionary. Meanwhile, casino operator Caesars Entertainment extended its outperformance relative to the S&P 500 amid continued buyout rumors. Elsewhere, Earth observation specialist Planet Labs rocketed 26% higher today after the company reported breakeven adjusted EPS in Q4 alongside revenue growth of 41% — both of which easily beat Wall Street’s expectations.

What this means for investors

Today marked the third consecutive day and the fourth straight week of declines for the S&P 500, as the market faces continued uncertainty over the Iran war. Facing the potential of rising inflation from soaring oil and gas prices, the Fed is all but eliminating the chance of any rate cuts in the foreseeable future.

This shift continues to put significant pressure on growth stocks as yields drift higher. Also hampering these growth stocks is the fact that investors are continuing to shift toward more defensive stocks as they seek refuge from an increasingly volatile market. That said, many long-term, market-stomping juggernauts like Nike, Home Depot, and O’Reilly Automotive continue to trade near 52-week lows, highlighting that there are always interesting opportunities to consider regardless of the macroeconomic situation.

Josh Kohn-Lindquist has positions in O’Reilly Automotive. The Motley Fool has positions in and recommends Home Depot and Nike. The Motley Fool has a disclosure policy.