In Markets "In a Nutshell"

Markets “In a Nutshell” for March 17, 2025

Investment Week at a Glance

Stocks finished lower for the week. The Dow Jones Industrial Average fell 3.1%, the S&P 500 was down 2.3%, and the NASDAQ fell 2.4%. Foreign stocks (MSCI EAFE) were also down, falling 2.1%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.32%.  (Data source: Wall Street Journal)

Markets Remain Volatile

Markets have struggled the past few weeks as tariffs and economic uncertainty have scared investors recently. The S&P 500 had its first correction (decline of 10%+) since October of 2023, and the NASDAQ has dropped about 14% from its peak. More diversified investors have fared well during the market downturn as large-cap tech has been hit the hardest. Market corrections are never fun but are not uncommon as since 1980, the S&P 500 has a drop of 10%+ in 47% of calendar years. It is important for investors to keep their long-term goals in mind and avoid making rash decisions during these times.

Value Stocks Outperform

During this market downturn, technology, and consumer discretionary have been hit the hardest as tech is down over 12% for the year and consumer discretionary is down over 15% for the year. More defensive sectors have outperformed such as health care, utilities, and consumer staples, all 3 are positive for 2025. These sectors tend to outperform during times of economic uncertainty. Another area that has seen positive returns is the fixed-income portion of investors’ portfolios. This has been another benefit to investors who have diversified holdings within their portfolios.

Ulta Beauty Surges After Q4 Earnings

Ulta’s stock moved higher by nearly 14% on Friday after the company beat earnings expectations for Q4. The company reported earnings per share of $8.46 beating the $7.12 estimate as well as revenue coming in at $3.49 billion topping the estimate of $3.46 billion. Despite the move higher, the stock remains down over 16% for the year and down nearly 33% in the past 12 months. Investors are hopeful that this could be a turning point for Ulta and their stock moving forward. (CNBC)

Quiz:

From 1928-2024 how many 10% declines has the S&P 500 seen? (Scroll Down for Answer)

  1. 78
  2. 96
  3. 117
  4. 135

 

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

Answer:

3. 117, the S&P 500 has seen a 10% correction 117 times since 1928. The S&P 500 has also seen 350 5% dips in the same time period.

 

 

 

 

 

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