U.S. equities experienced a slight rebound on Friday, March 21, 2025, as major indexes managed to halt a streak of weekly declines. The S&P 500 edged up by 0.1%, marking a much-needed turnaround for investors after a difficult week.
On this day, the S&P 500 and Dow both recorded gains, with the Dow rising 1.2% and the S&P 500 advancing 0.5%. The tech-heavy Nasdaq saw an increase of 0.5%, reflecting a general optimism in the market, despite some lingering negative sentiments among certain industry sectors.
One of the key highlights from the trading day was Super Micro Computer's strong performance, as its shares surged by 7.8%. This spike followed an upgrade from JPMorgan analysts, who expressed optimism regarding the company's prospects, particularly due to potential demand for servers equipped with Nvidia's Blackwell chips. Analysts indicated that Supermicro stands to benefit significantly from the growing AI infrastructure market.
Meanwhile, in the electric vehicle sector, Tesla's shares rose impressively by 5.3%. This uptick came after CEO Elon Musk held an all-hands meeting with employees the previous evening, urging them to retain their stock and instilling a sense of confidence following the company’s recent struggles that saw the stock value cut in half.
In defense news, Boeing's shares climbed 3.1% after the company received a massive contract from President Trump to produce the F-47, the next-generation fighter jet for the U.S. Air Force. Although specific financial details were not disclosed, estimates by The Wall Street Journal suggested that research, development, and acquisition costs could surpass $50 billion.
However, not all companies enjoyed positive outcomes. Lockheed Martin’s shares took a hit, slipping 5.8% after the company lost the contract to Boeing. This outcome reflects the fierce competition within the defense contracting sector, where major contracts can significantly alter market positions.
On a more disappointing note, shares of Micron Technology fell sharply by 8%, marking the worst performance in the S&P 500 for the day. Although the memory and semiconductor maker reported better-than-expected sales and profits for its fiscal second quarter, concerns about future gross margins prompted analysts at Citi to lower their price targets, raising red flags for investors.
Texas Pacific Land also saw its shares decline, dropping 7.2%. This downturn occurred following reports of significant stock sell-offs by several company insiders, including the CFO. Such insider trading often leads investors to question management’s confidence in the business's future, contributing to a lack of trust in the stock.
FedEx experienced difficulties as well, with shares decreasing by 6.5% after the company missed quarterly profit expectations and revised its full-year outlook downward due to ongoing economic uncertainties. This serves as a cautionary tale of how broader economic factors can impact even established companies.
Steelmaker Nucor's shares fell by 5.8% after the company provided a lower-than-expected profit forecast for the first quarter of 2025, attributing this to soft steel pricing that pressures its average selling prices. Such developments underscore the challenges faced by industrial companies in managing production costs amid fluctuating market conditions.
As March 21 drew to a close, it was clear that the U.S. stock market, while managing to halt its recent decline, still faced significant headwinds. Investors will be watching closely how these developments affect market trends and individual company performances in the weeks to come.
