Stock Market Update Friday March 21, 2025
- AlgoTradeAlert
- Mar 21
- 3 min read
Stock Market Update Friday March 21, 2025 The trading session opened on a weak note, saw a midday recovery, and managed a respectable close heading into the weekend. The S&P 500 (SPX) edged up 0.1%, the Nasdaq 100 (QQQ) gained 0.4%, while the Russell 2000 (IWM) lagged with a 0.6% decline.
Today's highly anticipated options expiry kept the SPX in a tight trading range. However, the index managed to snap a four-week losing streak, closing the week with a 0.5% gain. Earnings season delivered mixed results, with Nike (NKE), Micron (MU), and FedEx (FDX) trading lower post-report. On the flip side, recently battered names like Palantir (PLTR) and Tesla (TSLA) led the gainers, showing signs of renewed momentum.
Away From Stocks:
Treasury Markets: Short-term bonds continued to attract demand, with the 2-year yield declining to 3.94% from 4.06% on Monday. However, the 30-year yield rose four basis points to 4.59%, trimming some recent gains.
Commodities: WTI crude stabilized above $68 per barrel, while gold pulled back to $3,020 per ounce, consolidating after recent highs.
Crypto & Volatility: Bitcoin held firm at $84,000, maintaining its recent strength, while the VIX (volatility index) recorded its lowest March close, dipping below 19.
Tesla’s Technical Outlook:
Tesla's chart is signaling bullish consolidation with a bottoming pattern forming. Our proprietary algorithm suggests a potential buy signal next week, should technical conditions confirm the trend.
Tariff-induced market drawdowns have been short-lived, often creating tactical buying opportunities. In 2018, Trump's initial tariff threats at Davos triggered a sharp 12% selloff in the S&P 500 over 10 days, followed by an additional 9% correction after the formal tariff announcement in March. The VIX term structure indicates that volatility tends to subside once tariff uncertainties are resolved.
The recent market decline ranks as the fifth-fastest since 1950, suggesting a liquidity-driven dislocation rather than a fundamental repricing of risk assets. However, we will await a confirmed buy signal from our proprietary algorithm before initiating equity purchases or increasing exposure.
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