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Markets Update: U.S. stocks increase with a tech recovery, though trade uncertainty persists. The Fed maintains rates, indicating two reductions in 2025. The Turkish lira drops following the arrest of Erdogan's opponent. Oil, gold, and agricultural commodities climb due to economic and geopolitical risks.
Global Markets Roundup: 20 March 2025
Wall Street gained on Thursday, driven by a rebound in tech stocks and Fed comments reaffirming a cautious approach to rate cuts. The dollar strengthened, while the Turkish lira tumbled after the arrest of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan’s main political opponent.
Fed Holds Rates, Eyes Two Cuts This Year
The Federal Reserve kept interest rates steady at 4.25%-4.50%, signaling two expected rate cuts by year-end while raising inflation expectations and slightly reducing growth forecasts. Investors are pricing in a 63 basis point rate cut in 2025, with a 60% chance of a first reduction in June.
Stock Market Rebounds as Tech Leads Gains
Major U.S. stock indexes rose, with tech stocks driving the recovery:
Dow Jones Industrial Average: +179.29 points (0.42%) to 42,142.92
S&P 500: +19.70 points (0.34%) to 5,694.99
Nasdaq Composite: +86.54 points (0.50%) to 17,839.47
Tech heavyweights rebounded after recent losses:
Meta (META) +4%
Nvidia (NVDA) +1.9%
Amazon (AMZN) +1.2%
The CBOE Volatility Index (VIX) dropped to 19.6, its lowest in a month, signaling easing market fears.
U.S. Economic Data: Jobless Claims, Manufacturing Improve
Jobless claims totaled 223,000, in line with expectations, reflecting a stable labor market.
Mid-Atlantic manufacturing activity rose more than anticipated, suggesting lingering price pressures.
Darden Restaurants (DRI) revised its annual profit outlook downward amid tariff concerns, but its quarterly sales beat expectations, pushing shares up 6%. Meanwhile, Accenture (ACN) fell 6.2% after reporting contract delays due to the Trump administration’s federal spending cuts.
Turkish Lira Crashes on Political Crisis
Turkey’s markets reacted sharply to the detention of Imamoglu, which opposition leaders called "a coup against our next president."
The Swiss franc and Swedish krona also weakened as their central banks either cut or held rates steady, citing U.S. trade policy risks.
Oil and Gold Surge Amid Rising Trade and Geopolitical Risks
Crude prices climbed after reports that the U.S. Treasury Department would enforce tighter sanctions on Iranian crude exports.
WTI crude rose 1.6% to $68.23 per barrel
Brent crude gained 1.5% to $71.86 per barrel
Gold hit a record high, benefiting from safe-haven demand and the Fed’s rate stance:
Spot gold rose 0.1% to $3,044.50 per ounce
U.S. gold futures climbed 0.1% to $3,031.10 per ounce
Agricultural Commodities Mixed on Market Uncertainty
Agricultural markets saw mixed movement, with wheat, soybeans, and corn fluctuating on trade tensions and global supply concerns:
CBOT wheat (ZW1!) fell 8 cents to $5.55½ per bushel
Soybeans (ZS1!) gained 1¾ cents to $10.09½ per bushel
Corn (ZC1!) climbed 5 cents to $4.67 per bushel
Meanwhile, cotton futures remained mixed, with near-term contracts down 5 to 14 cents, while deferred contracts traded slightly higher.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team