Last Week’s Summary
- S&P 500 Index rose 0.53%
- International Equities rose 0.83%
- Emerging Markets rose 0.89%
- U.S. 10-Year Treasury Yield fell to 4.24%
- FOMC kept rates at 4.25-4.5%
- Initial Jobless Claims rose to 223k
- Leading Index fell to -0.3%
What to Watch for This Week
- M, 3/24/25 S&P Global US Manufacturing PMI
- T, 3/25/25 New Home Sales, Conf. Board Consumer Confidence
- W, 3/26/25 MBA Mortgage Applications, Durable Goods Orders
- Th, 3/27/25 Initial Jobless Claims, GDP Price Index
- F, 3/28/25 Personal Income, Personal Spending, U. of Mich. Sentiment
Weekly Market Recap
Just five minutes before Wall Street’s close, the S&P 500 erased an earlier decline that had exceeded 1% on Friday. A massive options expiration added a fresh layer of volatility, with over 21 billion shares traded across U.S. exchanges – marking the highest volume of 2025 so far.
Over the past month, trillions of dollars have been wiped from U.S. equity markets, as investors grapple with mounting concerns around an economic slowdown, tariffs, geopolitical tensions, and stretched valuations in the tech sector.
In response, trend-following systematic funds have turned net short on U.S. equities for the first time in over a year. These commodity trading advisers – which base their positions on market momentum rather than fundamentals – have cut their S&P 500 exposure to the lowest level since 2023, according to data from Goldman Sachs’ trading desk.
Meanwhile, retail investors injected more than $12 Billion into U.S. stocks during the week ending March 19, JPMorgan Chase & Co. data show.
Market watchers often monitor individual investors closely, as they tend to reduce exposure later in market cycles. The recent surge in retail buying could signal that equities may not have reached a bottom just yet.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
The Most Secure Way to Invest In 2025!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
