Market gets back into the green

The US stock market snapped its four-week losing streak as investors digested a cautious economic outlook from the Federal Reserve and more indications of a cooling consumer sector.

Even though the week got off to a solid start, bulls seemed to have trouble finding their footing. Early Friday the S&P 500 (SPX) tested its lows for the week before rebounding to end the day and week on an up note:

The headline: S&P 500 holds above correction threshold.

The fine print: Two out of three of last week’s up days occurred despite potentially negative economic news. Last Monday, retail sales came in weak for a second-straight month, and while the Fed held rates steady on Wednesday (as expected), they also lowered their 2025 GDP forecast, and raised their inflation and unemployment estimates. At the sector level, energy was the strongest performer despite a tepid week for crude oil, while financials and health care—two sectors recently highlighted by Morgan Stanley Wealth Management¹—also put up solid numbers.

The scorecard: The Dow Jones Industrial Average (DJIA) led the pack:

Sector returns: The strongest S&P 500 sectors last week were energy (+3.1%), financials (+1.8%), and health care (+0.9%). The weakest sectors were tech (-0.9%), communication services (-0.6%), and materials (-0.6%).

Stock movers: Arqit Quantum (ARQQ) +57% to $23.54 on Monday, ProAssurance (PRA) +48% to $23.02 on Thursday. On the downside, Sarepta Therapeutics (SRPT) -27% to $73.54 on Tuesday, HealthEquity Inc Com (HQY) -17% to $84.32 on Wednesday.

Yields: Last week the benchmark 10-year Treasury yield fell 0.07% to 4.25%.

Futures: Last Monday spot gold closed above $3,000 for the first time. April gold futures (GCJ5) closed at a record high of $3,041.20 last Wednesday before pulling back to end the week up $20.30 at $3,021.40. May WTI crude oil (CLK5) ended the week $1.37 higher at $68.28, thanks mostly to a 2% Thursday rally. Biggest gainers: May orange juice (OJK5) +6.5%, May copper (HGK5) +4.4%. Biggest decliners: April VIX (VXJ5) -6.1%, April cheese (CSCJ5) -4.1%.

The Fed’s preferred inflation gauge (PCE Price Index), durable goods, and consumer sentiment highlight the economic calendar:

●Monday: Chicago Fed National Activity Index, S&P Global Manufacturing and Services PMIs (flash)
●Tuesday: S&P Case-Shiller Home Price Index, FHFA House Price Index, consumer confidence, new home sales
●Wednesday: durable goods orders
●Thursday: Q4 GDP (final), trade balance in goods (advance), retail and wholesale inventories (advance), pending home sales
●Friday: personal income and spending, PCE Price Index, Michigan consumer sentiment and inflation expectations (final)

This week’s earnings include:

●Monday: Enerpac Tool (EPAC), KB Home (KBH), Oklo (OKLO)
●Tuesday: Core & Main (CNM), McCormick (MKC), Trump Media & Technology (DJT)
●Wednesday: Cintas (CTAS), Dollar Tree (DLTR), Paychex (PAYX)
●Thursday: TD Synnex (SNX), Winnebago (WGO), Lululemon (LULU)

Check the Active Trader Commentary each morning for an updated list of earnings announcements, IPOs, economic reports, and other market events.

On Friday, six trading days after the SPX fell in correction territory on March 13, the index closed 2.6% above that threshold.

As discussed in “Correction realities,” the SPX fell into a correction after a record high 14 other times over the past 42 years. Six trading days later, the index was higher in 10 of those cases—but posted a net loss the following week seven times.²

In contrast, the week after the SPX was lower six trading days after first closing in correction territory, the index posted a net gain the following week three out of four times. The one time it didn’t was in March 2020, during the depths of the COVID sell-off.

Click here to log on to your account or learn more about E*TRADE's trading platforms, or follow the Company on X (Twitter), @ETRADE, for useful trading and investing insights.

¹ MorganStanley.com. The GIC Weekly: Ways and Means. 3/17/25.
² All figures reflect S&P 500 (SPX) daily and weekly closing prices, 1983[57]-2025. Supporting document available upon request.