Markets Steady with Slight Gains; Signs of Exhaustion Among Bears

Tuesday, March 24, 2025

Today, the stock markets showed positive movement, with three of the four major indexes closing higher. This marks three consecutive days of gains for both the S&P 500 and the technology-focused Nasdaq. Certain momentum stocks have also rebounded significantly: Tesla (TSLA - Free Report) has surged by 28% over the past week and rose another 3.3% today, despite a year-to-date decline of 29%. Additionally, major market players known as the Magnificent Seven have shown stability, contributing to the upward trend.

The Dow Jones Industrial Average remained flat, gaining just 0.01%, while the S&P 500 saw a modest increase of 0.16%. The Nasdaq outperformed the other indexes, gaining 83 points, or 0.46%. However, the small-cap Russell 2000 index experienced a decline, dropping 14 points, or 0.66%. Bond yields saw a slight increase, with the 10-year yield at 4.31% and the 2-year yield at 4.01%.

Consumer Confidence Declines 7.75% Month-Over-Month

The Conference Board released its report on Consumer Confidence for March earlier today. The index was reported at 92.9, which fell short of the anticipated 95.0, and represents a drop of 7.75% from the revised figure of 100.1 for the previous month. This continues a trend of declining consumer sentiment for the fourth consecutive month, with older consumers tending to exhibit more pessimism than their younger counterparts.

A senior economist from the Conference Board noted that consumer confidence has dipped below its range of the past two years. The Expectations Index showed a sharper decline, dropping 9.6 points to a low of 65.2, marking its lowest level in 12 years. This decline can be reflected in the significant losses seen at specialty retailers this year, such as Abercrombie & Fitch (ANF - Free Report) down 48% and Victoria’s Secret (VSCO - Free Report) down 50%.

New Home Sales Meet Expectations

During the trading session, New Home Sales figures for February were released, coming in at 676,000, which is only slightly below the expected 677,000. This also represents a notable increase from the upwardly revised January figure of 664,000. These results followed the Case-Shiller Home Prices data released earlier today, which showed steady but positive growth. It is important to note, though, that the Case-Shiller information is based on data that is one month old, so it may take another month to see if these housing figures hold consistent with other available data.

Looking Ahead to Tomorrow’s Market

As we prepare for tomorrow, investors can look forward to the release of new Durable Goods Orders for February, which is also expected to show a cooling trend month-over-month. Previous orders for goods excluding transportation were flat at 0.0% last month. Additionally, remarks from Fed Presidents Kashkari of Minneapolis and Musalem from St. Louis are anticipated. Lastly, Dollar Tree (DLTR - Free Report) is scheduled to announce its earnings results before the market opens.

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