S&P 500 and Overall Market Updates

2025 started strong for investors, with the S&P 500 rising by around 2.70% in January. However, optimism surrounding U.S. markets has slowed, with the index correcting by 1.3% in February and continuing its downward trend in March. The market seems to be pricing in global uncertainty, driven by factors such as the ongoing trade war due to tariffs, inflation concerns, and an overvalued market.

While this news may seem discouraging, fundamental investors could find attractive opportunities as certain stocks trade at appealing valuations. The market appears to have hit a bottom, stabilizing and showing early signs of recovery.

Top Gainers This Week

Intel’s share price surged by approximately 19%, fueled by the appointment of new CEO Lip-Bu Tan. Investors have responded positively, with analysts optimistic that he can turn around the struggling chipmaker, which has been losing market share to NVIDIA and AMD.

Top Losers This Week

Super Micro Computer’s stock declined by around 7% over the past week. The company has faced a 57% drop in its share price in the past year due to a short-selling report from Hindenburg Research, which accused it of accounting irregularities. This was followed by delayed financial filings and the resignation of its auditor, who raised concerns about the accuracy of the company’s financial statements. Although the company recently received the all-clear from Nasdaq regarding its filings, insider stock sales have contributed to the decline in the last month. Currently, SMCI shares are trading at an attractive valuation.

American Airlines (AAL) shares are also on a downward trend, hitting a record low. Concerns over a potential recession and economic slowdown have fuelled fears of lower travel demand. Additionally, recent government budget cuts by DOGE are expected to reduce official travel, adding to the uncertainty surrounding the company.

From the Mag-7, you should be on the lookout for NVIDIA as it appears that the company has touched its bottom and already on the verge of recovery. Berkshire is another share that investors should seriously consider, with the stock showing resilience even in a declining market, making it a strong defensive pick for portfolios.

Tesla’s shares have also declined by around 6.5% in the past week and 35% in the past month. The decline is largely due to valuation concerns and intensifying competition in China.

While uncertainty looms over the broader market, the fundamentals of many companies remain intact. As Warren Buffett famously said: “Be fearful when others are greedy, and greedy when others are fearful.”