Stock Market Update

[BRIEFING.COM] The stock market is navigating a turbulent start to Q2 2025, reflecting ongoing volatility, tensions related to US trade policy, and economic uncertainty. The major indices moved lower right out of the gate, but the S&P 500 (+0.4%), the Nasdaq Composite (+0.8%), and the Dow Jones Industrial Average (+0.1%) trade near session highs after staging a rebound. 

The opening declines a Wall Street Journal report that the Trump administration may broaden the tariffs and impose a universal 20% duty on all imports. This also sent Treasury yields lower in a safe-haven bid. The 10-yr yield is down nine basis points to 4.16% and the 2-yr yield is down four basis points to 3.87%.

The subsequent wave of buying activity relates to a buy-the-dip mentality after a weak showing for stocks in Q1. Mega cap shares led the initial upside charge, but many names are participating. Microsoft (MSFT 380.97, +5.59, +1.5%), Apple (AAPL 222.77, +0.66, +0.3%), and NVIDIA (NVDA 109.17, +0.79, +0.7%) are among the influential winners.

Gains in the aforementioned names have propelled the technology sector toward the top of the leaderboard among the 11 sector, showing a 0.5% gain. The consumer discretionary (+1.6%) and communication services (+1.2%) sectors are also top performers, boosted by their respective mega cap components.

Reviewing today's economic data:

• March S&P Global US Manufacturing PMI - Final 50.2; Prior 49.8
• March ISM Manufacturing Index 49.0% (Briefing.com consensus 49.8%); Prior 50.3%
  • The key takeaway from the report is that there is a bad mix of decelerating activity, rising prices, and weakening employment for the manufacturing sector. It is the kind of mix that will stir talk of stagflation.
• February JOLTS - Job Openings 7.568 mln; Prior was revised to 7.762 mln from 7.740 mln
• February Construction Spending 0.7% (Briefing.com consensus 0.4%); Prior was revised to -0.5% from -0.2%
  • The key takeaway from the report is that the weakness in private residential spending was concentrated in multifamily construction.