Notable market news this past week (09-Mar-25)
Here is the Skeptivest roundup of the latest market headlines for the week
📈 US equities are trailing behind their European and Asian counterparts
Why the US market is struggling?: Tariffs are only part of the story—several structural factors are weighing on U.S. equities. The Federal Reserve’s restrictive monetary policy has kept interest rates elevated, pressuring high-growth sectors that rely on cheap financing. Meanwhile, corporate earnings have disappointed, with many firms warning of weaker consumer demand and rising costs. Valuation concerns also persist, particularly in the tech-heavy Nasdaq, which entered 2025 at historically high multiples, leaving it vulnerable to pullbacks.
Europe and Asia gain momentum: While US markets falter, Europe and Asia are benefiting from stronger economic fundamentals. European equities remain attractively valued relative to their U.S. counterparts, with the MSCI European Index trading at a notable discount on a forward P/E basis. Japan’s Nikkei 225 is rallying on corporate governance reforms, a weak yen boosting exports, and rising foreign investment. Meanwhile, China’s aggressive stimulus measures are helping to restore investor confidence after a challenging 2024.
Can the US Rebound?: Despite a rough start, Wall Street could recover if inflation cools and the Fed pivots toward easing. Investors are closely monitoring economic data and corporate earnings for signals of a potential turnaround. Until then, global diversification may remain the best strategy for 2025.
☕️ Quick fire happenings to note
🌏 Global macro
- Escalating US-China trade tensions as Beijing hits back with tariffs: Trade tensions between the US and China are escalating as Beijing retaliates with tariffs on US agricultural goods, including chicken, wheat, and corn, in response to President Trump’s recent tariff hike on Chinese imports. While these tariffs aim to hit Trump's voter base, they are also a reflection of the mounting challenges facing China's economy, including sluggish consumer spending, a debt crisis in the property sector, and rising youth unemployment. China's exports have already slowed, with the growth rate dropping significantly in early 2025, and while the government has set a growth target of 5%, many economists consider it ambitious given the external pressures.
- Mexico signals tariff review as US-China trade tensions escalate: Mexico is set to reassess tariffs on Chinese imports, President Claudia Sheinbaum announced, aligning with Donald Trump’s broader push for a more protectionist “Fortress North America.” Meanwhile, Beijing’s diplomatic tone shifted, with China’s top envoy condemning Trump’s tariffs as “evil.” The ongoing trade tensions also place the Chips Act at risk, potentially undermining U.S. semiconductor ambitions.
- ECB delivers 6th rate cut, signals end of easing cycle: The European Central Bank cut interest rates by 25bps to 2.5%, its 6th reduction since June, as cooling inflation and geopolitical shifts reshape the economic landscape. While the move was widely expected, policymakers signaled the rate-cutting cycle may be nearing its end. Analyst views on the path forward diverge, with forecasts ranging from no further cuts to rates bottoming at 1% by early 2026.
- US auto loan delinquencies hit 30 year high: US car owners are falling behind on payments at the highest rate since at least 1994, with 6.56% of subprime auto borrowers more than 60 days delinquent in January, according to Fitch Ratings. A slowing economy and lingering inflationary pressures are squeezing household budgets, while elevated car prices and borrowing costs have driven a surge in repossessions.
- SpaceX faces another setback as starship test ends in failure: SpaceX’s Starship experienced a critical failure during its 8th test flight, spinning out of control and breaking apart—marking another setback for Elon Musk’s space ambitions. This comes < 2 months after a similar mission ended in an explosion, underscoring the inherent risks of the accelerating “new space race.”
- S&P 500 tests key support amid market volatility: Chart watchers are on alert as the S&P 500 briefly dipped below its 200-day moving average, a closely watched technical level signaling broader trend shifts. The last breach in late 2023 preceded a swift rebound, but heightened market volatility complicates the outlook. The index is down 3.6% for the week, tracking its steepest weekly decline in six months, and 6.6% off its Feb. 19 record high. A further 10% drop would mark a technical correction. Meanwhile, the Nasdaq 100 is nearing that threshold, down 9.6% from its peak.
🏦 Individual stocks/companies
- Hewlett Packard Enterprise (-21% past 5 days) plunges on weak outlook: Hewlett Packard Enterprise shares tumbled 20% in premarket trading after the company warned that tariffs, margin pressures on server sales, and execution challenges would weigh on profitability in the coming year. In response, HPE is cutting 3,000 jobs as it navigates a tougher operating environment.
- Marvell Technology (-23% past 5 days) sinks nearly 20% on AI demand concerns: Marvell Technology (develops and produces semiconductors and related technology) tumbled 19.8% after missing sales expectations, raising fears of slowing AI infrastructure spending. A key analyst downgrade added to the pressure, warning that demand for AI chips may be cooling.
- MongoDB (-30.45% past 5 days) plunges 26.9% on revenue warning and rising competition: MongoDB saw a 26.9% drop after cutting its full-year revenue forecast, signaling a slowdown in enterprise spending. Increased competition from cloud giants like AWS and Microsoft further weighed on the stock.
- CrowdStrike (-16.42% past 5 days) tanks on weak guidance and competitive concerns: CrowdStrike dropped despite strong earnings, as weaker-than-expected forward guidance spooked investors. Increased competition in the cybersecurity space raised questions about the company's market dominance. While the stock had experienced a strong run-up ahead of earnings, traders took the opportunity to lock in gains, contributing to the downward pressure on the stock.
- Enphase Energy (+9.82% past 5 days) surges on tariff boost and strong market position: Enphase Energy jumped 9.4%, benefiting from trade restrictions on solar panels that increased demand for U.S. solar stocks. The company, which specializes in smart home energy solutions, including microinverters, battery storage, energy monitoring software, and EV chargers, is well-positioned to capitalize on government incentives and tariff protections.
🇸🇬 Singapore related
- Lee Hsien Loong highlights importance of new citizens in strengthening Singapore's economy and society: Senior Minister Lee Hsien Loong emphasized the vital role that new citizens play in enriching Singapore’s economy and culture at the Teck Ghee citizenship ceremony. He highlighted how fresh experiences, diverse perspectives, and global connections help the country thrive as a regional hub. Lee underscored the importance of being open to talent and ideas from around the world, drawing parallels to successful cities like London and New York. While acknowledging the need to manage immigration sensitively, he urged new citizens to integrate into Singaporean society, participate actively, and embrace local values. Lee also called on Singaporeans to welcome new citizens and work together to build a cohesive and prosperous nation.
