The US stock market closed with a small gain on Friday, snapping a four-week losing streak. The S&P 500 and Dow Jones Industrial Complex rose 0.1%, while the Nasdaq Composite gained 0.5%. President Trump’s willingness to be flexible in trade negotiations with trading partners boosted the markets.
However, investors remain cautious due to concerns over the Trump administration’s trade and immigration policies, as well as forecasts for slower US economic growth. The Federal Reserve predicted a decline in GDP this year to 1.7%, a sharp drop from 2.8% in 2024.
Fed Chairman John Williams attributed the slowdown to lower labor force growth due to reduced immigration rates. FedEx shares fell 10% after warning of flattening revenues and lowering its profit guidance, while analysts predict business investment will stagnate this year due to high borrowing costs and policy uncertainty.
A Bank of America survey found institutional investors are pulling out of US equities in favor of more stable regions. Even bullish market analysts are sounding a note of caution, citing heightened recession fears and the unpredictability of Trump’s trade policies.
“We’re betting on consumer resilience, but recession fears will weigh on valuation multiples,” said Ed Yardeni, president of investment adviser Yardi Research. “The risks of a recession and bear market may increase, depending on the President’s actions.”
Source: https://www.cbsnews.com/news/today-stock-market-down-news-trump-tariffs-3-21-2025