The week ending March 7th, 2025, was a turbulent one for stock markets across the globe. Uncertainty surrounding U.S. trade policy, coupled with concerns about a potential economic slowdown, led to significant volatility in major indices. The S&P 500 had its biggest weekly loss since September 1. Let’s take a closer look at the performance of key markets in the USA, Europe, Asia, India, and Oceania.
United States
The U.S. stock market experienced its worst week since September, with the S&P 500 shedding 3.1% and the tech-heavy Nasdaq Composite falling 3.5% 1. The Dow Jones Industrial Average also declined, losing 2.4% 1. The Russell 2000 Index fell 0.6% 2. These declines came amid concerns about the impact of President Trump’s trade policies and fears of a looming economic slowdown 1. The S&P 500 swung more than 1%, up or down, for six straight days 3.
Several factors contributed to the market’s downturn. Firstly, President Trump announced plans to impose new tariffs on several trade partners, triggering fears of a trade war and its potential impact on economic growth 4. The price of oil fell to its lowest level since late 2021 1. The yield on the 10-year Treasury, which tends to fall when concerns about the economy rise, was at 4.31% 1. Secondly, a slew of weaker-than-expected economic data releases, including consumer confidence and retail sales figures, raised concerns about the health of the U.S. economy 5. U.S. households are bracing for higher inflation because of tariffs, which is weakening their confidence and could hold back their spending 3.
Traders had been building bets the Fed would have to cut its main rate more than three times this year following a stream of weaker-than-expected reports on the economy 3. However, Jerome Powell, the head of the Federal Reserve, said he thinks the economy looks stable at the moment, and he doesn’t feel pressure to cut interest rates in order to prop it up 3. The jobs report showed that the unemployment rate remained at 4% 3. Christopher Waller, a member of the Federal Reserve Board of Governors, said that if the labor market seems to be holding, then you can just kind of keep an eye on inflation 6. Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said that today’s print wasn’t as bad as feared 3. Brian Jacobsen, chief economist at Annex Wealth Management, said that the market might breathe a sigh of relief that the labor market was still looking healthy, but a deeper dive shows that spring could be a more challenging season 3.
Despite the negative sentiment, some experts believe that the economic expansion and bull market in stocks remain intact. They point to factors such as moderating economic growth, a steady labor market, and robust spending on artificial intelligence as reasons for optimism 7.
Impact of Tariffs on U.S. Sectors
The tariff announcements had a significant impact on specific sectors of the U.S. economy. The sectors most affected by the tariffs include:
- Motor vehicles, bodies and trailers, and parts 8
- Machinery 8
- Electrical equipment, appliances, and components 8
These sectors saw an increase in the import share of total costs, which could lead to higher prices for consumers and businesses.
Geopolitical Developments and Earnings Reports
In addition to trade policy, several geopolitical events also influenced the U.S. stock market. The U.S. suspended intelligence sharing with Ukraine 9 and asked for Russia’s help in negotiating with Iran 10. The Supreme Court rejected Trump’s request to halt $2 billion in foreign aid payments 9. Chevron accelerated its exit from Venezuela amid a stricter U.S. approach to Caracas 9. The Trump administration is open to a minerals deal with Kinshasa 9. The U.S. acquired two ports at both ends of the Panama Canal 10 and issued a waiver for $95 million in military assistance to the Lebanese Armed Forces 10. Canada imposed retaliatory tariffs on U.S. goods 10. Russian and American delegations met in Istanbul 10.
Several companies reported their earnings this week, including Polestar Automotive Holding, Despegar.com, JinkoSolar Holding, and Paragon 28 11. Broadcom rose 8.6% after delivering stronger profit and revenue for the latest quarter than analysts expected 3. Hewlett Packard Enterprises slumped 12% after reporting profit for the latest quarter that fell just short of analysts’ expectations 3. Costco sank 6.1% after the retailer reported a weaker profit for the latest quarter than expected 3. Walgreens Boots Alliance climbed 7.5% after the pharmacy and drug store chain agreed to be acquired by private equity firm Sycamore Partners 3.
The following companies also announced stock splits:
| Symbol | Company | Ratio | Effective Date |
| SNEX | StoneX Group Inc. | 1.5:1 | 3/24/2025 |
| ITUB | Itau Unibanco Banco Holding SA | 10% | 3/19/2025 |
| KUKE | Kuke Music Holding Limited | 1:10 | 3/13/2025 |
| BCUCY | Brunello Cucinelli S.p.A. ADR | 5:1 | 3/11/2025 |
| STMGF | Stamper Oil & Gas | 1:10 | 3/06/2025 |
Europe
European stocks showed resilience in the face of global uncertainty, with the pan-European STOXX Europe 600 Index ending 0.60% higher 4. This marked the index\’s longest streak of weekly gains since August 2012 4. Encouraging company results and gains in defense stocks helped to offset concerns about U.S. trade policy 4.
Germany\’s DAX rose 1.18%, while Italy’s FTSE MIB added 0.61% 4. France’s CAC 40 Index, however, fell 0.53% 4. The UK’s FTSE 100 Index gained 1.74% 4. German stocks lost 1.8% to give back some gains from earlier in the week sparked by a seismic shift in its policy on debt 3.
The European Central Bank cut interest rates by 25 basis points to 2.65% 8. The central bank signaled a more neutral policy stance, which, combined with increased defense spending by European nations, boosted investor confidence in the region\’s growth outlook 8.
Germany\’s Defense Spending and Economic Impact
Germany\’s decision to amend its constitution to exempt defense and security spending from fiscal limits is a significant development that could have a major impact on the German economy and European defense stocks 8. This policy shift could unlock hundreds of billions of euros for investments in the defense sector, potentially leading to increased growth and job creation.
Key Economic Data Releases
Several important economic data releases were announced in Europe this week. The GDP growth rate for the Euro Area was 0.2% quarter-over-quarter and 1.2% year-over-year 12. Employment change was 0.1% quarter-over-quarter and 0.7% year-over-year 12. The inflation rate was 0.5% month-over-month and 2.8% year-over-year 12. Factory orders in Germany were down 7% month-over-month 13. The Halifax House Price Index in Great Britain was down 0.1% month-over-month and up 2.9% year-over-year 13. The BBA Mortgage Rate in Great Britain was 7.33% 13. In France, the balance of trade was -€6.5 billion, the current account was -€2.2 billion, exports were €49.836 billion, foreign exchange reserves were €295.98 billion, and imports were €56.4 billion 13. Industrial production in Spain was down 1% year-over-year 13.
Geopolitical Developments and Earnings Reports
Several geopolitical developments also took place in Europe this week. Estonia urged Europe to pay more for defense 14. The European Parliament is investigating EU grants to Shell, VW, and migrant NGOs 14. The EU backed off a call to explore reviving Russian gas for Slovakia 14. Albania is planning to block TikTok in the coming days 14.
Several companies reported their earnings this week, including Constellation Software, Schroders, Altagas, Algonquin Power & Utilities, Freehold Royalties, and Ulker Biskuvi Sanayi AS 15.
Asian stock markets were mixed, with some indices posting gains while others declined. The Nikkei 225 in Japan fell 2.17% 16, while the SSE Composite Index in China edged down 0.25% 16. The Hang Seng Index in Hong Kong also declined, losing 0.57% 16. The Japan 225 is a price-weighted index 17.
In India, the BSE SENSEX ended the week with a marginal decline of 0.010% 16, while the NIFTY 50 edged up 0.035% 16.
Factors Influencing Asian Markets
Several factors influenced market performance in Asia. In Japan, concerns about the impact of U.S. tariffs and a potential economic slowdown weighed on investor sentiment 18. In China, the government\’s efforts to boost consumption and support economic growth provided some support to the market 19. China\’s central government has ample fiscal policy tools and space to respond to possible domestic and external challenges 6. The People\’s Bank of China will implement a moderately loose monetary policy 6. China\’s commerce minister said that his country will not yield to bullying and that its economy can weather higher tariffs imposed by Trump 6. Singapore charged three men over chip transfers to China 10.
Key Economic Data Releases
Several important economic data releases were announced in Asia this week. The balance of trade for China was $170.52 billion, exports year-over-year were up 2.3%, and imports year-over-year were down 8.4% 13. Foreign exchange reserves for Indonesia were $154.5 billion 13. Foreign exchange reserves for China were $3.227 trillion 13. The FAO Food Price Index was 127.1 13.
Earnings Reports
Several companies reported their earnings this week, including Constellation Software, Miniso, Enstar, Algonquin Power, Polestar Automotive Holding A, Edenor ADR, Despegar.com, Denison Mines, JinkoSolar, Everi Holdings, Paragon 28, Grupo Televisa ADR, Steel Partners Holdings Pref, Chimerix, Advantage Solutions, Arbutus Biopharma, Deep Yellow, Capricor Therapeutics, Precigen, Evolv Technologies Holdings, Omeros, Stoke Therapeutics, Sandridge Energy, Ur Energy, Corvus Pharmaceuticals, Design Therapeutics, Microvision, Netlist, XOMA, WhiteHorse Finance, Lyell Immunopharma, ProQR Therapeutics, Seritage Growth Properties, Dalpha Tau Medical, INmune Bio, National Bankshares, Contineum Therapeutics, BankFinancial, Cartesian Therapeutics, Permian Basin Royalty Trust, Soho House & Co, Steel Partners Holdings, Nuvation Bio, Sana Biotechnology, PlayAGS, McEwen Mining, Genesco, Nano-X Imaging, Olema Pharmaceuticals, and Faraday Future 20.
India
The Indian stock market ended the week on a mixed note, with the BSE SENSEX declining marginally by 0.01% 16 and the NIFTY 50 edging up 0.035% 16. The market was influenced by a combination of domestic and global factors. Equity spot markets follow a T+1 rolling settlement 4. All trading is conducted between 9:15 a.m. and 3:30 p.m., Indian Standard Time (+ 5.5 hours GMT), Monday through Friday 4.
Domestic and Global Influences
Domestically, the government\’s focus on infrastructure development and economic growth provided some support to the market 21. However, concerns about rising inflation and potential interest rate hikes by the Reserve Bank of India weighed on investor sentiment 22. Southern states opposed the federal plan to redraw constituencies 23.
Globally, uncertainty surrounding U.S. trade policy and its potential impact on the Indian economy also influenced market performance 21. Kunal Vora, Head of India Equity Research, BNP Paribas, said that in a world of increasing tariffs, India\’s relatively inward-focused economy is better positioned compared to more trade-dependent nations 24.
Key Economic Data Releases
Several important economic data releases were announced in India this week. Foreign exchange reserves were $638.7 billion 13. The currency was 87.16 25. The GDP growth rate was 1.1% 25. The GDP annual growth rate was 6.2% 25. The unemployment rate was 8.2% 25. The inflation rate was 4.31% 25. The interest rate was 6.25% 25. The cash reserve ratio was 4% 25. The balance of trade was -$22.99 billion 25. The current account was -$9,700 million 25. The current account to GDP was -1.2% 25. Government debt to GDP was 81.59% 25. The government budget was -5.87% of GDP 25. Business confidence was 120 25. The manufacturing PMI was 56.3 25. The services PMI was 59 25. Consumer confidence was 93.7 25. The corporate tax rate was 34.94% 25. The personal income tax rate was 39% 25.
Oceania
The Australian stock market, as represented by the S&P/ASX 200, fell 1.81% during the week 16. This decline was primarily driven by concerns about the impact of U.S. tariffs on the Australian economy 15. The S&P/ASX 200 had its largest three-week point and percentage decline since June 24, 2022 26. It also had its largest one-day point decline since February 3, 2025 26. The S&P/ASX 200 had its longest losing streak since February 21, 2025 26. It closed at its lowest value since August 15, 2024 26. The ASX 200 is measured in points and tracks the combined movements of all 200 shares within the index 27.
Key Economic Data Releases
Several important economic data releases were announced in Oceania this week. The cash rate target was 4.10% 28. Economic growth was 0.8% 28. Inflation was 2.4% 28. The unemployment rate was 4.0% 28. Employment growth was 3.1% 28. Wage growth was 3.5% 28. Average weekly earnings were $1,480.90 28. The household saving ratio was 3.2% 28. Net foreign liabilities as a percentage of GDP were 26.6% 28. One Australian dollar was equal to 0.62 U.S. dollars 28. China GDP growth was 5.4% 28. G7 GDP growth was 1.7% 28.
Immigration Reforms
The Australian government recommended major reforms to the country\’s immigration system 29. Australia announced that it would increase the number of permanent migration visas 29. New Zealand announced significant immigration reforms to increase its available pool of labor 29.
Conclusion
The week ending March 7th, 2025, was marked by significant volatility in global stock markets. Uncertainty surrounding U.S. trade policy, coupled with concerns about a potential economic slowdown, led to declines in major indices in the USA, Asia, and Oceania. However, European stocks showed resilience, supported by encouraging company results and increased defense spending.
The U.S. stock market experienced its worst week since September, with major indices like the S&P 500 and Nasdaq Composite falling sharply. Concerns about President Trump\’s trade policies and a potential economic slowdown weighed on investor sentiment. However, some experts believe that the economic expansion and bull market in stocks remain intact, citing factors such as moderating economic growth, a steady labor market, and robust spending on artificial intelligence.
European stocks, on the other hand, showed resilience in the face of global uncertainty. The pan-European STOXX Europe 600 Index ended the week higher, marking its longest streak of weekly gains since 2012. Encouraging company results and gains in defense stocks helped to offset concerns about U.S. trade policy. The European Central Bank\’s decision to cut interest rates also provided support to the market.
Asian stock markets were mixed, with some indices posting gains while others declined. The Nikkei 225 in Japan and the Hang Seng Index in Hong Kong fell, while the BSE SENSEX in India ended the week with a marginal decline. In China, the government\’s efforts to boost consumption and support economic growth provided some support to the market.
The Australian stock market also declined, driven by concerns about the impact of U.S. tariffs on the Australian economy.
Overall, the global stock market performance in the week ending March 7th, 2025, reflects the ongoing uncertainty and volatility in the global economic and geopolitical landscape. Investors are closely monitoring developments in U.S. trade policy, economic data releases, and geopolitical events, which could continue to influence market performance in the coming weeks.
| Region | Index | Weekly Change (%) |
| United States | Dow Jones Industrial Average | -2.4 |
| S&P 500 | -3.1 | |
| Nasdaq Composite | -3.5 | |
| Europe | STOXX Europe 600 | +0.6 |
| DAX | +1.18 | |
| FTSE 100 | +1.74 | |
| Asia | Nikkei 225 | -2.17 |
| SSE Composite Index | -0.25 | |
| Hang Seng Index | -0.57 | |
| India | BSE SENSEX | -0.01 |
| NIFTY 50 | +0.035 | |
| Oceania | S&P/ASX 200 | -1.81 |
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual financial circumstances and risk tolerance. Investing in the stock market involves risk, including the potential loss of principal. Consult with a qualified financial advisor before making any investment decisions. The authors are not liable for any losses incurred as a result of relying on this information.
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