From Lift-Off to Meltdown: A Week of Market Mayhem

Stocks soared, then sank. Inflation spiked. Tariffs returned. Here’s what really went down — and what’s coming next.

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Market Mastery Digest
March 31, 2025

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This week started like a rocket launch and ended in a nosedive.

Monday kicked off with some serious bullish energy.

But by Friday, inflation fears and shaky consumer confidence had investors pulling the parachute cord.

So what happened in between?

Let’s break it down, piece by piece!

The week kicked off strong with optimism in the air.

Investors responded to news that the Trump administration was considering dialing back some of its proposed tariffs.

That potential easing in trade tension sent the Dow Jones Industrial Average up 1.4% on Monday.

Tesla led the rally, soaring 12%, while Nvidia, Amazon and Meta Platforms each gained more than 3%.

The S&P 500 closed 1.8% higher, and the Nasdaq jumped 2.3%.

Investors also saw signs that inflation might be cooling, which boosted confidence.

Tom Lee even came out swinging with a bold call: “a face-ripping rally has begun.”

⚖️ Midweek: Rally Fizzles as Uncertainty Creeps Back In

The Dow finished flat, the S&P 500 edged up 0.2%, and the Nasdaq climbed 0.5%, but overall momentum slowed.

Investors were cautiously optimistic, still riding Monday’s tailwind but keeping an eye on upcoming inflation and economic data.

Markets declined as investors digested mixed signals on inflation and growth.

More notably, the Trump administration made headlines again by pushing ahead with a plan to reimpose broad-based tariffs, reigniting fears of a potential trade war.

The renewed tariff concerns, combined with signs of persistent inflation, led to a risk-off mood.

Bond yields ticked up, reflecting expectations that the Fed might stay cautious with rate cuts.

The week ended on a sour note.

The Core PCE Price Index — the Fed’s preferred inflation gauge — rose 0.4% in February, the sharpest monthly increase in over a year.

Year-over-year, it clocked in at 2.8%, above expectations and keeping inflation firmly in the spotlight.

Meanwhile, consumer sentiment dropped as households grew more worried about future economic conditions.

All this, paired with Trump’s tariff move earlier in the week, sent stocks tumbling.

The S&P 500 dropped 2%, and the Nasdaq sank 2.7%.

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We have another busy week ahead.

April 2 Tariff Deadline – Trade Tensions Peak

All eyes are on April 2, when the U.S. is set to announce additional tariffs on a wide range of imports.

This move could have significant implications for global trade dynamics and market sentiment.

Labor Market Indicators – Employment in Focus

Midweek brings crucial labor market data, including the ADP Employment Change report on Wednesday, and the Nonfarm Payrolls report on Friday.

These releases will provide insights into employment trends and potential shifts in the job market. ​

ISM Manufacturing and Services PMIs – Gauging Economic Activity

The ISM Manufacturing PMI is scheduled for Tuesday, followed by the ISM Services PMI on Thursday.

These indices offer a snapshot of the health and momentum of the manufacturing and services sectors, respectively.

JOLTS Job Openings – Labor Demand Insights

On Tuesday, the JOLTS Job Openings report will shed light on the number of available positions, offering a perspective on labor demand and potential wage pressures. ​

Unemployment Claims – Weekly Pulse Check

Thursday also brings the latest figures on initial and continuing unemployment claims, providing a timely gauge of layoffs and ongoing unemployment trends. ​

Fed Chair Powell Speaks – Monetary Policy Signals

Investors will be closely monitoring remarks from Federal Reserve Chair Jerome Powell this week for any indications on the future direction of monetary policy, especially in light of recent economic developments.

What a week, huh?

From explosive rallies to inflation gut punches, the market’s been throwing curveballs left and right.

In times like these, the best traders don’t just react — they adapt.

So keep your edge sharp, your strategy flexible, and your eyes on the prize.

Catch you next week.