On March 26, 2025, Wall Street is poised for a day of slight fluctuations as futures indicate a mixed opening for the major indices. Specifically, Dow Jones futures are up by 0.07%, S&P 500 futures have increased by 0.03%, while Nasdaq futures show a minor decline of 0.02%. This comes after a modest uptick in the indices on March 25, 2025, despite disappointing consumer confidence data.
According to Paul Hickey, co-founder of Bespoke Investment Group, the consumer sentiment figures might suggest a looming recession, especially given that the expectations index has dropped to its lowest level in 12 years. "If you look at the soft data, you’d think we’re in a recession right now, particularly after the consumer confidence report," Hickey stated. However, he notes that the hard data tells a different story. "We’re not seeing anywhere near the collapse reflected in the soft data. Last week’s reports on housing starts, building permits, industrial production, capacity utilization, and new home sales were all in line or better than expected," he explained.
Today, investors are keeping an eye on the durable goods orders index, which is projected to show a 1.1% monthly decrease in the headline number. In contrast, the core data, which excludes transportation, is expected to rise by 0.2%.
One of the most talked-about stocks today is GameStop, which has surged by 16.2% in pre-market trading. The increase follows the company’s announcement that its board has approved a plan to invest in Bitcoin and US dollar-denominated Stablecoins. GameStop reported earnings of 29 cents per share for the fourth quarter, with net sales of $1.28 billion, a drop from the previous year's earnings of 21 cents per share on $1.79 billion in sales.
Meanwhile, Boeing remains stable as it prepares for a trial in June 2025 regarding two incidents involving its 737 MAX aircraft that occurred in 2018 and 2019. Dollar Tree also made headlines today, seeing a 4.3% increase after selling Family Dollar for over $1 billion to Brigade Capital Management and Macellum Capital Management.
On a different note, United Parcel Service (UPS) saw its stock rise by 0.2% after Bank of America lowered its price target from $133 to $129 but maintained a 'buy' recommendation. In contrast, Tesla shares are expected to open lower, down by 1% after five consecutive days of gains, as investors await the company's quarterly delivery numbers expected around April 2, 2025. Nvidia is also facing challenges, with its shares down 1.44% as Chinese authorities have discouraged major tech firms from purchasing H20 chips, which are designed to comply with US export sanctions.
In another significant development, Donald F. Robertson Jr., the chief accounting officer of NVIDIA Corp, sold 4,500 shares of the company on March 21, 2025, at prices ranging from $116.31 to $117.77, totaling $525,585. After these transactions, he retains 479,428 shares. This sale was part of a pre-established trading plan adopted in October 2023. NVIDIA has shown remarkable performance, boasting a revenue growth of 114.2% over the past year, and has received a 'Buy' rating from UBS analyst Timothy Arcuri, who has set a price target of $185 for the stock.
In an exciting move for the tech industry, Cassava Technologies recently announced plans to build the first AI factory in Africa using NVIDIA technology. This initiative aims to provide advanced AI computing capabilities to businesses and researchers across the continent. NVIDIA CEO Jensen Huang emphasized the universal importance of AI in a podcast, advocating for open-source technology to ensure safety and transparency. He highlighted AI's potential in specialized fields such as disease expertise and its role in bridging the global technology gap.
On a different front, SoundHound AI's stock experienced a significant drop following NVIDIA's decision to sell its entire stake in the company during the fourth quarter of 2024. This news, combined with competitive pressures and a lackluster presence at the CES, has led to a nearly 50% decline in SoundHound's stock this year, despite the company having previously enjoyed a surge in its stock price after NVIDIA's initial investment.
Moreover, Yum! Brands, which owns KFC, Taco Bell, and Pizza Hut, announced a groundbreaking collaboration with NVIDIA on March 18, 2025. The partnership aims to utilize AI for evaluating restaurant performance and implementing voice AI systems for managing drive-thru orders. This move positions NVIDIA not just as a technology provider but potentially as a competitor to SoundHound, which has previously secured similar agreements with Church’s Texas Chicken and Torchy’s Tacos.
Amidst this backdrop, investor Stanley Druckenmiller has made headlines by selling 95% of his stake in Palantir and divesting all of his shares in NVIDIA. This shift indicates a clear sign of distrust towards technology stocks, as he pivots towards pharmaceutical assets that have faced significant declines. Among his latest investments is Teva Pharmaceutical Industries, in which he holds nearly 9 million shares. Teva's stock is currently trading at around $15, despite having faced numerous challenges, including litigation related to the opioid crisis.
As the market continues to navigate these turbulent waters, the decisions made by major investors and companies will undoubtedly influence the direction of the tech and pharmaceutical sectors in the coming months. Investors are left pondering whether to follow the trends set by influential figures like Druckenmiller or to stick with the tech giants that have shown resilience and potential for growth.
