US stocks concluded a volatile session on Friday with modest gains, ending a four-week losing streak. The S&P 500 edged up 0.1% to close at 5,667.56, while the Dow Jones Industrial Average added 32.03 points, or 0.1%, finishing at 41,985.35. The Nasdaq Composite rose 0.5% to settle at 17,784.05.
For the week, the S&P 500 posted a 0.5% gain, the Dow advanced 1.2%, and the Nasdaq edged up 0.2%.
Market volatility was heightened due to “quadruple witching,” the simultaneous expiration of stock options, index futures, index options, and single-stock futures. Goldman Sachs estimated that over $4.7 trillion of notional options exposure expired during this event. Additionally, investors reacted to trade tensions as President Donald Trump reaffirmed plans for reciprocal tariffs by April 2, though he suggested some “flexibility” in their implementation.
Tariffs and weak outlooks pressure sentiment
Concerns over tariffs impacted corporate outlooks. FedEx shares dropped 6.5% after the company cut its earnings forecast, citing “weakness and uncertainty in the U.S. industrial economy.” Nike’s stock declined more than 5% following an announcement that sales this quarter would miss analysts’ expectations due to tariffs and declining consumer confidence.
Despite midweek optimism after the Federal Reserve indicated it would likely cut rates twice this year, investor sentiment remains cautious. The S&P 500 is still nearly 8% below its record high, falling short of the 10% correction threshold.
Declining iron ore prices
Iron ore, a significant export commodity for Australia, has experienced a price decline recently. As of March 21, 2025, iron ore prices stood at US$101 per tonne, down from US$105 per tonne the previous week. This decrease is attributed to a combination of increased supply from major producers in Australia and Brazil, and a slowdown in demand from China, on the back of China’s ongoing property market crisis and economic slowdown.
All eyes on Canberra as budget day nears
In Australia, attention is focused on the upcoming federal budget, to be delivered Tuesday night around 7:30pm by Treasurer Jim Chalmers.
Chalmers has indicated that the budget will provide “substantial” cost-of-living relief without fuelling inflation, including measures such as a $150 electricity rebate and a $25 cap on PBS prescription medicines starting January 1, 2026. However, he has also warned of reduced revenue and external risks, including escalating US trade tensions.
The SPI futures are pointing to a fall of 41 points.
