March 7, 2025
Good morning,
It has been a rough, volatile week so far for U.S. equity indices: S&P 500 Index -3.61%, NASDAQ -4.12%, Russell 2K -4.43% on the week through last night’s close. It is almost a perfect mirror image for International Indices – just put a plus sign in front of the U.S. numbers. The correction in U.S. equites continues.
The big economic event of the week arrived this morning in the form of February employment numbers. A sigh of relief from investors accompanied numbers that were largely in line with expectations. Markets have been unmoved initially in reaction. Economists, in general, believe this will be the last “solid” employment number for several months ahead due to the loss of jobs at the Federal government level.
Futures at 9 am EST are at their overnight session lows (+.10%) but have been a terrible indicator of how any day in the past few weeks will end. There are no signs that today will be any different, and investors have consistently reduced risk ahead of weekends since the inauguration.
I have a chart that may soothe some fears leading into the weekend embedded in my Monthly Note. Unfortunately, the note was tied up in compliance early this morning (I submitted late; it’s on me). I will send it out later today.
Be well,
Mike