Weekly Market Update for 3/28/2025

Market Mood

This week, the stock market felt like a stormy sea—lots of waves and not much calm. All the major indexes took a hit:

• The Dow Jones dropped 1%.

• The S&P 500 fell 1.5%.

• The Nasdaq tumbled 2.6%.

What’s Behind the Drop?

1. Inflation Concerns: Prices are rising faster than expected, with February’s inflation rate hitting 2.8%. It’s like noticing your favorite coffee costs more every time you buy it.

2. Consumer Confidence Slump: People are feeling less optimistic about their financial futures. Confidence levels hit a 12-year low, reflecting worries about jobs and inflation—kind of like hesitating to make big purchases when you’re unsure about your paycheck.

3. Trade Tensions: New tariffs on imported vehicles were announced, making businesses and investors nervous—similar to hearing about potential changes at work that could affect your budget.

Sector Highlights

• Tech Stocks: These took the biggest hit, much like a star player having an off game, dragging the whole team down.

• Consumer Staples: Companies selling everyday essentials held up better, as people tend to stick with necessities during uncertain times.

What This Means for You

Here’s what I’d tell my clients:

1. Stay Calm: Market ups and downs are normal, like weather patterns—you’ll see sunshine after the rain.

2. Think Long-Term: If you’re investing for retirement or other goals years down the road, don’t let short-term noise distract you.

3. Diversify Your Portfolio: Spread out your investments to reduce risk—it’s like not putting all your eggs in one basket.

4. Review Your Plan: If this volatility has you worried, it might be time to sit down with your advisor and revisit your financial goals.