Equity Markets Pop on Tariff News
March 24, 2025
Following a week in which the S&P 500 Index snapped a four-week losing streak, equity markets are set to open higher this morning on news that impending trade tariffs may be more targeted than expected.1 The beaten-up large capitalization technology names are leading the move higher.2 Treasury yields are also climbing, as the tariff news is helping to reduce concerns that an economic downturn may be near.3
This week’s economic calendar includes the Federal Reserve’s (Fed) favorite inflation gauge — personal consumption expenditures (PCE) — out Friday.4 February’s PCE and core PCE are both expected to increase by 0.3%,5 levels suggesting the Fed has more work to do to bring inflation down to its 2% target. Monday’s S&P purchasing managers’ data as well as Friday’s personal income and spending reports will also be closely watched for any signs of weakness after the Fed lowered its 2025 U.S. economic growth forecast during last week’s meeting.6,7
Sources:
1CNBC – S&P 500 ekes out a gain Friday, snaps four-week losing run: Live updates; 3/21/25
2CNBC – Dow rallies more than 350 points to start week on hopes Trump is softening tariff stance: Live updates; 3/24/25
3CNBC – Treasury yields rise as fears of an all-out trade war ease; 3/24/25
4-6MarketWatch – U.S. Economic Calendar; as of 3/24/25
7CNBC – Fed holds interest rates steady, still sees two cuts coming this year; 3/19/25
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