U.S. stock indexes edged lower Thursday despite more positive economic signals. The S&P 500 slipped 0.2% after fluctuating between modest gains and losses throughout the day. The Dow Jones Industrial Average dipped by 11 points, or less than 0.1%, and the Nasdaq composite fell 0.3%.
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— ET NOW (@ETNOWlive) March 27, 2025
Wall Street has been volatile for weeks, with stock prices reacting to expectations about federal policy changes and economic conditions. Stocks got a slight boost after reports indicated the economy remains solid enough to justify keeping interest rates unchanged. Additional data released Thursday supported this view.
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A report showed that jobless claims were slightly lower last week than economists had expected, indicating potential stability in the job market. Another report highlighted stronger-than-expected retail sales last month, while a third report suggested manufacturing growth in the mid-Atlantic region exceeded forecasts. Federal Reserve Chair Jerome Powell emphasized the high degree of uncertainty currently influencing economic forecasts.
Nasdaq $QQQ with a textbook rejection off the 200 Day Moving Average 🚨 pic.twitter.com/6xmJssU6bC
— Barchart (@Barchart) March 26, 2025
He noted that the trade war is not the only factor impacting Wall Street; a combination of factors is adding to the unpredictability. Among individual stocks, Accenture suffered one of the more significant losses despite reporting slightly better-than-expected profit and revenue for the latest quarter.
S&P 500 $SPX falls back below its 200D moving average 😭📉 pic.twitter.com/wSsAOxLn0e
— Barchart (@Barchart) March 26, 2025
Wall Street sees continued volatility
Concerns are growing about Accenture’s potential revenue hit from the U.S. government, particularly under the leadership of Elon Musk. The federal government accounted for 17% of Accenture’s North American revenue last fiscal year, leading to a 7.3% drop in its stock. Barry Bannister, chief equity strategist at Stifel, commented that the U.S. stock market was likely overdue for its recent drop, which saw valuations increasing much faster than corporate profits.
He suggested that the S&P 500 could see a short-term bounce, especially after Fed officials indicated the possibility of cutting interest rates twice this year. Lower interest rates typically boost the economy and investment prices, though Bannister foresees continued pressure on stock prices due to an anticipated economic slowdown and persistent inflation. Darden Restaurants climbed 5.8% in other gains after reporting quarterly profits that matched expectations.
The company, which owns Olive Garden and Ruth’s Chris Steak House, cited a “challenging environment” but met analyst forecasts. All told, the S&P 500 slipped 12.40 points to close at 5,662.89. The Dow Jones Industrial Average dipped 11.31 points to 41,953.32, and the Nasdaq composite fell 59.16 points to 17,691.63.
London’s FTSE 100 fell 0.1% in overseas markets, with declines more pronounced across other parts of Europe. Germany’s DAX index dropped 1.2%, and Hong Kong’s Hang Seng index fell 2.2%, driven largely by pressure on tech-related stocks. In the bond market, the yield on the 10-year Treasury fell to 4.23% from 4.25% late Wednesday.
