Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 20, 2025.
Brendan McDermid | Reuters
The S&P 500 ticked lower on Thursday as uncertainty around the U.S. economy continued to weigh on equities, thwarting the market’s attempts at recovery from a monthlong rout.
The broad market index pulled back 0.4%, while the Nasdaq Composite slid 0.6%, as Apple shares sank more than 1%. The Dow Jones Industrial Average fell 70 points, or about 0.2%.
Tesla shares joined Apple in trading more than 1% lower, as did Alphabet, all of which helped to drag down the market. Meta Platforms and Nvidia, however, were outliers among the “Magnificent Seven” stocks, rising more than 1% and 0.4%, respectively.
The moves comes a day after the latest Federal Reserve meeting, at which the central bank forecast two interest rate cuts this year and left interest rates unchanged. Fed Chair Jerome Powell pointed to tariffs as a source of concern, especially among consumers, which could put pressure on the economy.
The central bank also raised its inflation outlook and lowered its economic growth projection. Traders largely expect the Fed to not make any moves before officials see the impact of tariffs.
“Bull markets don’t die of old age. They die of fright, and what they’re most afraid of is recession,” said Sam Stovall, CFRA Research’s chief investment strategist. “We’re at crossroads, but I think that the market is basically saying, Okay, we’re still on path for a rate cut in June, and we’re not going to worry about it because right now the economy is holding up pretty well.”
Stocks rebounded Wednesday following the Fed’s policy decision. However, the S&P 500 – which briefly slipped into correction territory last week – remains more than 8% off its record high reached in February. Over the past month, it’s declined more than 7%.
