21.03.202515:48 Forex Analysis & Reviews: US Market News Digest for March 21

US stock market in limbo despite positive economic data such as unexpected growth in existing home sales

On Thursday, US benchmark stock indices closed in the red: the Dow Jones fell by 0.1%, the NASDAQ dropped 0.3%, and the S&P 500 lost 0.2%, finishing the day at 5,662 points — well below the upper border of its usual 5,500–6,000 range.

The FOMC-inspired rally quickly fizzled out, and attempts to build on the momentum failed. Mega-cap stocks seemed to collectively take the day off, while investors remained puzzled about the broader economic outlook.

Ironically, some positive news emerged amid the uncertainty. Existing home sales in February surprised to the upside. Weekly jobless claims remained stable, confirming strength in the labor market. Yet, market optimism stayed muted as the threat of new tariffs potentially taking effect on April 2. Underwhelming Fed projections on higher inflation and slower economic growth in 2025, dampened enthusiasm and weighed on investor sentiment. Read more here.

Donald Trump sparks constitutional crisis, prepares tariff offensive for April 2

While the Federal Reserve is doing its best to calm financial markets, in 2025 its efforts feel as effective as a bucket of water on a forest fire. The real newsmaker remains Donald Trump, who seems to be staging his own version of "Independence Day", boldly calling April 2 the "day of America's liberation." His rhetoric strongly hints at the imminent introduction of reciprocal import tariffs, which is unnerving investors already on edge.

According to Morgan Stanley, expecting the S&P 500 to return to record highs before H2 2025 is like hoping to see a unicorn rhino. As long as uncertainty dampens corporate and economic growth prospects, any rally will be as short-lived as New Year's gym resolutions.

The situation is further complicated by the looming zero hour: the expiration of $4.5 trillion in derivatives contracts in the third week of March. Last time, the VIX fear index spiked due to hawkish Fed signals. Read more here.

US stock indices under pressure amid tariff threats and central bank caution

US stock markets once again dipped into mini-panic mode yesterday. The S&P 500 slipped 0.22% while the Nasdaq 100 fell 0.33%. Small percentages, but big on anxiety. Asian markets joined the global downturn like participants in a strange flash mob titled "Fear of the Future."

The culprits? The bleak tone of recent central bank meetings, which only reinforced the age-old truth: the economic fog thickens, while clarity remains elusive.

And of course, Donald Trump added fuel to the fire, proclaiming with great flair that broad reciprocal tariffs and additional sector-specific levies will take effect on April 2.

Is this the start of a trade apocalypse or just Trump's way of shaking up the markets? Investors are now watching global reactions closely, waiting for potential countermeasures.

Meanwhile, FedEx Corp shares sank after the company cut its profit forecast, citing rising costs and clear signs of weakening demand — a troubling sign from a company often seen as a barometer of the US economy. Read more here.

Apple reshuffles AI leadership amid mounting challenges

From a technical perspective, the market seems to be caught in a state of indecision, awaiting cues from upcoming earnings reports and potential rate cuts. The S&P 500 remains stuck near 5,630 after four weeks of declines, triggered by fears over economic slowdown, inflation, and unstable corporate earnings. However, Friday's uptick has sparked speculation of a potential reversal. While investors hope it's not just a final gasp before another plunge, the situation remains precarious.

Meanwhile, Apple is once again trying to prove to the world that its AI can do more than just remind you of missed alarms. In a bid to catch up with its competitors, the tech giant has made a major leadership shake-up. According to Bloomberg, CEO Tim Cook has lost confidence in John Giannandrea, the former head of Apple's AI division, whose performance failed to impress investors — or Cook himself.

Now, the fate of Siri lies in the hands of Mike Rockwell, a hardware wizard who probably didn't expect his next mission to be: "revive our virtual assistant before it forgets its own name." Find more here.

Market volatility persists amid fresh economic data and trade tensions

On Thursday, US stock markets closed with minor losses, leaving investors looking like someone trying to fix a TV with just a remote control. The trading session resembled a rollercoaster, with sharp spikes followed by equally sharp drops. The main causes of concern? New macroeconomic data and subtle but worrying tones in recent statements from the Federal Reserve.

Hints of anxiety over trade barriers were so faint they could be mistaken for a polite cough, but investors got the message: storm clouds are gathering over the economy.

Sentiment on Wall Street is souring faster than coffee at a finance meeting. The latest figures are flashing warning signs of slowing growth and fading consumer optimism, all while the trade spat continues to simmer. Washington's tariff retaliation strategy is adding fuel to the fire.

Ironically, despite the gloomy backdrop, the market managed to post gains in three of the past four sessions. Wednesday was particularly upbeat: the S&P 500 surged over 1% after the Fed left interest rates unchanged. More information here.

Elon Musk tells Tesla employees: don't sell shares

Elon Musk is back with a bold pitch: humanoid robots called Optimus. And he didn't just tease them — he laid out a full-blown roadmap, in classic Musk's fashion: 5,000 units in 2024, and 50,000 in 2025. Built with autopilot-based tech, these robotic assistants are expected to debut in Tesla's factories before eventually marching into the mainstream. Internal testing begins this year, and if all goes to plan, Optimus might soon be bringing Musk his morning coffee and compliments on his genius.

But here's the rub: Tesla's stock has crashed 41.5% since the start of the year. Investors' nerves are fraying — driven by plunging EV demand, fierce competition from China's BYD, and the sense that Musk is increasingly distracted by politics and eccentric ventures.

Sales are being hurt not just by Tesla's own missteps, but by Chinese EV makers offering cheaper, more feature-packed alternatives. Back home in the US, rivals like Ford, GM, and rising startups aren't giving up market share without a fight. More information here.