Weekly Digest - March 25th
S&P 500 and Overall Market Updates
The S&P 500 gained 1.6% last week, bringing optimism despite many stocks remaining down since early 2025. The primary reason behind the selloff and broader decline in the past few months is the tension surrounding tariffs, which could escalate to a trade war, resulting in higher inflation and a slowdown for the US Economy. However, recent reports suggest President Trump may scale back some tariff plans to avoid economic strain, fueling this week’s rally.
The official announcement on April 2 is expected to focus on reciprocal tariffs rather than broad-based ones. Specific industries, including automobiles, pharmaceuticals, and semiconductors, may be excluded, though no official confirmation has been made.
Top Gainers This Week
Tesla surged 15%, driven by optimism over potential tariff exclusions and a 40% decline in the past three months, making it attractive to investors. CEO Elon Musk’s public encouragement for investors to hold shares further boosted sentiment.
AMD shares jumped 10%, with reports suggesting the exclusion of semiconductors from tariffs. Additionally, reports indicated that Ant Group has been testing AMD’s chips, achieving performance comparable to NVIDIA’s high-end GPUs at 20% lower costs, adding to the bullish momentum.
Airline stocks also performed well, with Boeing rising by 12% after winning a $20 billion US government contract for the next-generation F-47 fighter jet. Southwest Airlines (+8%) and United Airlines (+7%) rallied as hedge funds increased their stakes and analysts from UBS and Barclays upgraded Southwest’s rating. Given the sharp decline in airline stocks in recent months, the recent gains suggest the sector may be on a recovery path.
Top Losers This Week
In the top losers, Nike is leading the race, dropping by around 9% and tumbling to a 5-year low. Management warned that a global trade war and consumer caution could weigh on sales, and UBS analysts expect further downside. The company has also been consistently losing market share in a rising sneaker and athleisure market to Adidas and smaller, premium competitors such as On, Hoka, and Lululemon.
Lockheed Martin was another stock on the decline, dropping by around 7.6%. The drop is primarily due to the company losing the contract for the F-47 jet to Boeing. The company’s shares are currently trading at an attractive valuation.
Stocks to Look Out For
Investors should keep Lululemon and Gamestop on their watch list, with both companies expected to announce their earnings in the coming days.
While the markets show signs of recovery, various narratives are at play. April 2 will be a key event for the US Markets and Economy as President Trump announces the tariff policies.