Stock Market Update: March 19, 2025

By Stephen Wisnefski
Updated March 19, 2025, 06:30 PM EDT

Stocks closed higher on Wednesday, driven by the Federal Reserve’s decision to hold its key interest rate steady amid increased economic uncertainty. The Dow Jones Industrial Average rose by 0.9%, the S&P 500 gained 1.1%, and the Nasdaq Composite added an impressive 1.4%. This uptick follows a concerning trend earlier in the month, where both the S&P 500 and Nasdaq experienced four consecutive weeks of losses, attributed to investor apprehension about potential economic slowdowns and U.S. policy changes under the Trump administration, particularly regarding tariffs.

Federal Reserve’s Stance

At the conclusion of a two-day policy meeting, the Fed issued a statement reaffirming that economic activity continues to expand at a solid pace. However, it also highlighted a rise in uncertainty regarding the economic outlook. The Federal Reserve’s Summary of Economic Projections painted a more cautious picture for 2025, indicating lowered expectations for economic growth along with an anticipated increase in inflation. Despite these concerns, Fed Chair Jerome Powell reassured that the central bank is prepared to respond to future developments but sees no immediate need to adjust interest rates.

The yield on the 10-year Treasury note reflected this cautious sentiment, settling at 4.25% after reaching an intraday high of 4.32%, marking its lowest levels in over a week.

Gainers and Market Movers

Leading the market’s resurgence were major companies such as Boeing and Tesla. Boeing’s stock soared nearly 7% after the aerospace giant secured a deal to sell 17 of its 737-8 aircraft to Japan Airlines. Additionally, Boeing’s CFO Brian West communicated a positive outlook regarding the company’s cash position during a recent conference, bolstering investor confidence.

Tesla shares rebounded as the electric vehicle maker saw a nearly 5% increase in value after a challenging few months, where the company had lost nearly half of its market valuation. The rise in share prices was echoed across the tech sector, with notable gains from industry titans including Apple, Microsoft, Alphabet, Amazon, Meta Platforms, and Broadcom.

Among other significant gainers, Super Micro Computer’s shares jumped almost 6%, benefiting from the introduction of its new systems that utilize the latest Nvidia AI chip technology. Additionally, Caesars Entertainment’s stock rose by 5.7% following the announcement of new independent board members.

Decliners in Focus

While several stocks rallied, others faltered. Intel led the S&P decliners with a significant 6.9% drop as the chipmaker faced scrutiny after naming a new CEO, Lip-Bu Tan. While there was initial enthusiasm regarding this leadership change, concerns about potential restructuring and cuts have created volatility around the stock.

Progressive, the insurance provider, slipped 3.5% after revealing substantial pretax net realized losses on securities despite achieving growth in year-over-year premiums. Shares of Gilead Sciences also faced a downturn of 2.5% due to reports of possible federal funding cuts for HIV prevention treatments.

Commodities Update

The commodity markets experienced some shifts as well. Gold futures rose by 0.6% to $3,060 an ounce, nearing record highs, while West Texas Intermediate crude oil prices increased by 0.4%, climbing to $67.20 per barrel. The cryptocurrency market saw Bitcoin trading at approximately $85,800, recovering from a low of $81,800 earlier in the day. Notably, MicroStrategy’s stock jumped over 7%, benefiting from the upward trend in Bitcoin prices.

As markets continue to navigate through complexities arising from global economic factors and domestic policies, stakeholders are keeping a close watch on upcoming developments for clearer signals on the economic trajectory.

This report compiles insights from Wednesday’s market performance along with notable trends affecting investor sentiments and industry movements. For ongoing updates and analysis on market dynamics, stay tuned to Smart Money Mindset.

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