The week ending March 21, 2025, witnessed a period of generally positive momentum across global stock markets, particularly in regions that had experienced recent corrections. While uncertainties surrounding US economic policies, especially tariffs and geopolitical tensions lingered, several markets managed to rebound, driven by specific regional factors and company news. This report provides a detailed summary of the performance of major stock market indices in the USA, Europe, Asia, India, and Oceania, along with an analysis of the key events and news that influenced trading during this period.
USA Market Review
The US stock market experienced a recovery during the week ending March 21, 2025, breaking multi-week losing streaks for major indices. The S&P 500 posted a weekly gain of 0.5%, closing at 5667.56 1. This marked the most significant weekly increase in both points and percentage since the week ending February 14, 2025 3. Similarly, the Dow Jones Industrial Average climbed 1.2% to finish at 41985.35, also snapping a two-week period of decline 1. The technology-heavy Nasdaq Composite rose by a more modest 0.2% to close at 17784.05, also ending a four-week downturn 1. In contrast to the broader market recovery, the Russell 2000 index, which tracks smaller companies, fell by 0.6% to 2056.98 1. This suggests that the positive sentiment might have been more concentrated in larger capitalisation stocks.
Several key factors influenced the direction of the US markets. The Federal Reserve held its benchmark interest rate steady at 4.5% for the second consecutive meeting 7. Alongside this decision, the Fed released its economic projections, which indicated a downward revision for GDP growth in 2025 to 1.7% from the previously forecasted 2.1%, and an upward revision for core inflation to 2.8% from 2.5% 7. These adjustments partly reflect the anticipated consequences of recently implemented US tariffs and retaliatory measures from trading partners. Furthermore, the Fed announced a further slowing of its quantitative tightening program, reducing the monthly cap on US Treasuries redemption to $5 billion from $25 billion starting in April 7. During his press conference, Federal Reserve Chairman Jerome Powell acknowledged that tariffs were likely a significant contributor to the elevated inflation forecast and emphasized the increased uncertainty surrounding the overall economic outlook 7. This cautious stance from the central bank, acknowledging the potential negative impacts of trade policies on both growth and inflation, likely contributed to the market volatility observed throughout the week.
Concerns regarding the Trump administration’s tariff policies had previously pushed the S&P 500 into a correction 2. However, market sentiment appeared to improve on Friday after President Trump hinted at potential flexibility in the application of these tariffs during ongoing trade negotiations 13. This suggests that the market is highly reactive to any indications of a potential easing in trade tensions, highlighting the significant impact of these policies on investor confidence.
Specific company news also played a crucial role in market movements. Super Micro Computer (SMCI) experienced a significant surge of 7.8% on Friday following an upgrade by JPMorgan. Analysts cited the company’s potential to benefit from strong demand for AI infrastructure, particularly its servers incorporating Nvidia’s Blackwell platform 4. Tesla (TSLA) shares also saw a positive movement, rising by 5.3% after CEO Elon Musk addressed employees in an effort to bolster confidence amidst a recent sharp decline in the stock price 4. In the aerospace and defence sector, Boeing (BA) shares advanced by 3.1% after securing a contract to build the US Air Force’s next-generation fighter jet, the F-47 4. Conversely, shares of Lockheed Martin (LMT) fell by 5.8% after losing out on the same contract 4. In the technology sector, Micron Technology (MU) shares tumbled 8% despite reporting better-than-expected sales and profits for its fiscal second quarter. This decline was attributed to concerns about the company’s gross margin trajectory, leading analysts at Citi to lower their price target on the stock 4. Texas Pacific Land (TPL) shares also faced downward pressure, falling 7.2% following reports of substantial insider selling by top executives 4. FedEx (FDX) shares experienced a significant drop of 6.5% after the company missed its quarterly profit estimates and lowered its full-year outlook, citing economic uncertainty 4. Similarly, Nucor (NUE) shares slipped 5.8% after providing a weaker-than-anticipated profit forecast for the first quarter of 2025 due to soft steel pricing 4. While the snippets do not provide a specific weekly performance for Nike (NKE), one report indicates a 6% drop on Friday due to disappointing revenue guidance 14. These individual company performances, driven by earnings reports, analyst ratings, and significant business developments, highlight the stock-specific factors influencing the overall market.
Sector-wise, energy stocks (+3.24%) and financial services (+1.91%) were the top performers for the week, suggesting a potential rotation towards more cyclical sectors as the market showed signs of stabilization 16. On the other hand, basic materials (-0.36%) and consumer defensives (-0.07%) underperformed 16. Finally, Friday’s trading session coincided with a “triple witching” event involving the expiration of a large volume of options contracts, which may have contributed to increased market volatility 17.
Table 1: US Stock Market Index Performance (Week Ending March 21, 2025)
Index | Weekly Change | Closing Value (March 21, 2025) |
S&P 500 | +0.5% | 5667.56 |
Dow Jones Industrial Average | +1.2% | 41985.35 |
Nasdaq Composite | +0.2% | 17784.05 |
Russell 2000 | -0.6% | 2056.98 |
Europe Market Review
European stock markets presented a mixed performance for the week ending March 21, 2025, with some indices managing to close in positive territory while others experienced declines. The UK’s FTSE 100 index ended the week with a slight gain of 0.17% at 8646.79 18. However, it saw a decline of 0.6% on Friday 19. The Euro Stoxx 50 index finished the week up by 0.36% at 5423.83 20, although it also closed down by 0.50% on Friday 20. The broader STOXX Europe 50 Index recorded a more substantial weekly increase of 1.06% 22. In contrast, Germany’s DAX index closed the week lower by 0.41% at 22891.68, marking a decline for three consecutive trading days, including a 0.47% drop on Friday 15. Similarly, the French CAC 40 index ended the week with a marginal gain of 0.18% at 8042.95 but closed down by 0.63% on Friday 23.
A significant factor influencing European markets was the commentary from the European Central Bank (ECB) regarding potential US tariffs. ECB President Christine Lagarde cautioned that any retaliatory measures from the EU against US tariffs could negatively impact Eurozone economic growth, potentially reducing it by as much as 0.5% if counter-tariffs were implemented 24. Despite these growth concerns, she indicated that the inflation risks associated with such a scenario were likely to be limited 24. This suggests that the primary concern for European investors was the potential for escalating trade tensions with the US and the detrimental effect this could have on the region’s economic expansion.
Adding to the cautious sentiment, the flash estimate for the Euro Area’s consumer confidence indicator for March 2025 showed a further decline of 0.9 percentage points, falling to -14.5 points 25. This indicates a continued weakening of consumer sentiment, which could have implications for future consumer spending and overall economic activity in the Eurozone. Geopolitical tensions, including heightened risks in the Middle East and Ukraine, also contributed to a more negative close for European equities on Friday 26.
The Bank of England (BoE) decided to maintain its interest rate at 4.5%, citing the ongoing uncertainty surrounding US tariffs and the risk of domestic stagflation 26. This decision, coupled with a cautious outlook from the central bank, may have contributed to the slight downturn in the FTSE 100 on Friday. Earlier in the week, news of a substantial €500 billion stimulus package announced by Germany, aimed at boosting economic growth and strengthening its military, likely provided some underlying support to European markets 26. Additionally, rising inflation in Japan raised expectations for further interest rate hikes by the Bank of Japan 26. While this was specific to the Japanese market, it may have had a minor indirect influence on European investor sentiment as they considered the broader global monetary policy landscape. Finally, weaker-than-expected corporate earnings from some major US companies, such as FedEx and Nike, appeared to dampen investor sentiment in Europe towards the end of the trading week 14.
Table 2: European Stock Market Index Performance (Week Ending March 21, 2025)
Index | Weekly Change | Closing Value (March 21, 2025) |
FTSE 100 | +0.17% | 8646.79 |
Euro Stoxx 50 | +0.36% | 5423.83 |
DAX | -0.41% | 22891.68 |
CAC 40 | +0.18% | 8042.95 |
Asia Market Review
Asian stock markets experienced a generally negative week ending March 21, 2025, with the exception of Japan and South Korea. Concerns over potential US tariffs and their broader implications for global trade and economic growth weighed heavily on investor sentiment across the region 24. Fitch Ratings issued a warning that increased US tariffs on Chinese goods could lead to a significant reduction in China’s GDP by 2026 27.
Japan’s Nikkei 225 index bucked the trend, rising by a robust 1.68% for the week to close at 37677.06 14. This positive performance was likely supported by Japan’s inflation data, which, while showing a slight decrease in February, remained above the Bank of Japan’s target 26. This fueled expectations for further interest rate hikes by the central bank, a factor generally viewed positively by the market. However, the Nikkei did see some profit-taking on Friday, closing down by 0.20% 33.
In contrast, the Hang Seng Index in Hong Kong experienced a decline of 1.13% for the week, closing at 23689.72 14. The index saw a sharp drop of 2.19% on Friday 14. This downturn was partly attributed to profit-taking in the technology sector, which had recently driven the index to a three-year high 27. Additionally, reports suggesting that the People’s Bank of China (PBoC) did not see an immediate need for further interest rate cuts may have contributed to the negative sentiment 31.
Mainland China’s Shanghai Composite Index also finished the week in negative territory, falling by 1.60% to close at 3364.83 14. The index experienced a 1.29% drop on Friday 39. Similar to Hong Kong, concerns about US tariffs and the lack of immediate signals for further aggressive monetary easing from the PBoC likely contributed to this decline 31.
South Korea’s KOSPI Composite Index was a notable outperformer in the region, rising by 2.99% for the week to close at 2643.13 27. The index saw gains for the fifth consecutive trading day on Friday, increasing by 0.23% 41. While the provided snippets do not offer specific details on the primary drivers of this strong performance, expectations within the chip sector were mentioned as a contributing factor on Friday 42. Deepening geopolitical worries across the globe also appeared to have a general dampening effect on risk appetite in the Asian markets 29.
Table 3: Asian Stock Market Index Performance (Week Ending March 21, 2025)
Index | Weekly Change | Closing Value (March 21, 2025) |
Nikkei 225 | +1.68% | 37677.06 |
Hang Seng Index | -1.13% | 23689.72 |
Shanghai Composite Index | -1.60% | 3364.83 |
KOSPI | +2.99% | 2643.13 |
India Market Review
The Indian stock market delivered an exceptional performance during the week ending March 21, 2025, marking its best weekly gain in over four years. The Nifty 50 index surged by 4.26% to close at 23350.40 43, while the BSE Sensex rallied by 4.17% to finish at 76905.51 43. This strong showing was fueled by robust bullish sentiment and a resurgence of foreign institutional investor (FII) buying 43.
The positive momentum was broad-based, with mid-cap and small-cap indices outperforming the benchmark indices 43. The Nifty Midcap 150 and Nifty Smallcap 250 indices recorded significant increases of 7.27% and 8.14%, respectively 51. Sectoral performance was overwhelmingly positive, with all major sectors closing in the green. Notably, the Realty, Financials, and Automobile sectors led the gains 44. The BSE Oil & Gas, Power, and Healthcare sectors also exhibited strong performance 44. Even the Nifty IT index, which initially faced losses on Friday, managed to recover and close in positive territory 48.
Several individual stocks experienced significant movements. NTPC was the top gainer among the Sensex 30 stocks, rising by 3.3% 44. Other prominent gainers included Bajaj Finance, Sun Pharma, Larsen & Toubro, Kotak Bank, Nestle India, and Tata Motors 44. Manappuram Finance’s share price jumped by over 5% on Friday following the announcement of a substantial investment by Bain Capital 43. Rail Vikas Nigam (RVNL) also saw its share price increase after securing new orders 43. Additionally, shares of BPCL and ONGC showed strong upward movement 47. On the other hand, Mahindra & Mahindra, Tata Steel, Infosys, Titan, and Bajaj Finserv experienced losses during the week 44.
The Indian Rupee also strengthened against the US dollar during the week, likely supported by dollar inflows and the rebalancing of FTSE’s All-World Index 43. Despite prevailing global uncertainties, the Indian economy continued to demonstrate resilience, maintaining a steady growth trajectory 52. Furthermore, India’s foreign exchange reserves saw an increase 53. The remarkable performance of the Indian stock market during this week suggests a strong domestic focus, driven by positive investor sentiment and robust sectoral growth, seemingly less affected by the global headwinds that impacted other regions.
Table 4: Indian Stock Market Index Performance (Week Ending March 21, 2025)
Index | Weekly Change | Closing Value (March 21, 2025) |
Nifty 50 | +4.26% | 23350.40 |
BSE Sensex | +4.17% | 76905.51 |
Oceania Market Review
Stock markets in Oceania presented a mixed picture for the week ending March 21, 2025. The Australian S&P/ASX 200 index showed a strong recovery, rising by 1.82% for the week to close at 7931.20 27. The index finished slightly higher on Friday 55. In contrast, New Zealand’s NZX 50 index experienced a decline of 1.2% for the week 57, although it did see a gain of 0.49% on Friday to close at 12113.54 58.
Similar to other global markets, the potential impact of US tariffs remained a point of concern for the Australian market 27. However, the ASX 200’s positive performance was partly driven by a significant rally in supermarket stocks, including Woolworths and Coles, following the release of findings by the Australian Competition and Consumer Commission (ACCC) 55. The ACCC concluded that these major supermarket chains should not be forcibly broken up but offered recommendations for improved pricing practices and transparency within the sector 56. Furthermore, encouraging labour market data in Australia bolstered expectations of a potential interest rate cut by the Reserve Bank of Australia (RBA) in May 56. This anticipation of monetary policy easing provided support to the market, particularly for interest rate-sensitive sectors like real estate 56.
In New Zealand, the economy had recently emerged from a brief recession, recording a GDP growth of 0.7% in the last quarter of 2024 63. However, consumer confidence appeared to remain somewhat subdued 25. Specific company news also influenced the NZX 50. Ryman Healthcare’s share price experienced a significant fall after trading resumed 57, while The Warehouse Group was a notable gainer on Friday following the release of a market update 58. Commodity prices also played a role, with gold prices remaining near record highs, potentially benefiting Australian gold miners, although some saw losses on Friday 27. Oil prices also showed an upward trend, which could have provided support to energy stocks in the region 27. Overall, the Australian market demonstrated resilience and recovery, driven by local factors and monetary policy expectations, while the New Zealand market experienced a slight decline, possibly reflecting more localised economic concerns and company-specific news.
Table 5: Oceania Stock Market Index Performance (Week Ending March 21, 2025)
Index | Weekly Change | Closing Value (March 21, 2025) |
S&P/ASX 200 | +1.82% | 7931.20 |
NZX 50 | -1.2% | 12113.54 |
Global Market Conclusion
The week ending March 21, 2025, presented a diverse landscape for global stock markets. The US market demonstrated a notable rebound, ending a period of consecutive losses, likely influenced by a combination of factors including potential shifts in US trade policy and positive developments within specific technology companies. Nevertheless, underlying concerns regarding slower economic growth and persistent inflation, as indicated by the Federal Reserve’s outlook, remained. European markets experienced modest overall gains but were significantly impacted by the potential for escalating trade tensions with the US, as highlighted by the ECB’s cautious statements. Geopolitical uncertainties also contributed to market volatility across Europe. Asian markets exhibited a mixed performance. Japan’s Nikkei continued its upward trajectory, supported by encouraging inflation data and expectations of further monetary policy tightening. However, Hong Kong and mainland China’s Shanghai Composite saw declines, primarily driven by profit-taking in the technology sector and concerns about the pace of further economic stimulus in China, compounded by the overarching anxiety surrounding US tariffs. South Korea’s KOSPI stood out with strong gains. India’s stock market was the star performer, delivering its best week in over four years, fueled by strong domestic investor confidence and renewed foreign investment, appearing relatively insulated from the global headwinds. Oceania showed a split performance, with Australia’s ASX 200 recovering strongly, boosted by local news and anticipation of RBA rate cuts, while New Zealand’s NZX 50 experienced a slight decline. In summary, while some regions showed positive momentum and recovery, particularly the US and India, the pervasive uncertainty surrounding US trade policies and the potential for a global trade war continued to cast a shadow over market sentiment in Europe and parts of Asia. Domestic economic factors and specific regional news played a crucial role in shaping the performance of individual markets.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The author and the publishing entity assume no liability for any losses incurred based on the information provided.
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