Trading results for 6 March 2025
After a rebound on Wednesday, the market experienced a sharp and widespread sell-off amid concerns that rising global trade tensions could trigger a significant economic downturn or even a recession. The sell-off briefly paused when President Donald Trump announced in a social media post that the 25% tariffs imposed on Tuesday on Mexican imports would be suspended until April for "anything that falls under the USMCA Agreement," – the United States-Mexico-Canada Agreement on free trade.
However, the decline resumed following the release of data showing a significant drop in government employment for February. As a result, all major U.S. indexes closed near their daily lows, posting substantial losses ranging from -0.99% for the Dow Jones Industrial Average (DJIA-30) to -2.61% for the tech-heavy NASDAQ Composite. The primary benchmark of the U.S. market, the S&P 500, lost 1.78%.
The most concerning aspect of Thursday’s session is that the NASDAQ Composite fell below its 200-day moving average and is now down more than 10% from its mid-December 2024 highs. This signals that the index has entered correction territory, which could unsettle some investors and trigger further selling. The S&P 500 is on a similar trajectory, having tested its 200-day moving average on Thursday. If this support level is breached, the index could decline further into the 5,650–5,670 range. In short, the sell-off is intensifying, and there are no clear signs of market stabilisation yet.
The ITS index family also came under pressure due to the sell-off in U.S. stocks. The Islamic stock index, ITS Shariah (ITSS), which consists exclusively of American securities, was particularly affected. However, thanks to strong portfolio diversification, ITSS still outperformed the leading U.S. indexes. While the best-performing U.S. index, the Dow Jones, declined by 0.99%, ITSS recorded a smaller loss of 0.85%.
The decline was even less pronounced in the global market index, ITS World (ITSW), which fell by just 0.49%. Chinese and European stocks continued to provide support. By the end of Thursday, only 11 out of the 50 companies in the ITSW index closed in positive territory, with just two of them being American stocks. However, these two – U.S. healthcare giant UnitedHealth (UNH, +2.47%) and oil major Exxon Mobil (XOM, +2.07%) – were the best performers in the index for the day.
As we approach the end of the week, the market remains in a fragile position. However, there is hope that Friday might bring some relief. This optimism is not unfounded, as semiconductor leader Broadcom (AVGO) released an exceptionally strong earnings report immediately after the closing bell on Thursday. The company’s stock surged over 15% in after-hours trading, pulling futures on major U.S. indexes higher. This momentum might be enough to close the week on at least a slightly positive note.