Is Four Red Weeks In a Row & Down Around 10% From Its Peak Enough?

*Analyzing the markets with Richie Naso, a Wall Street veteran of over 40 years and former member of the NYSE.

DJIA 52-wk: +7.16% YTD: -2.48% Wkly: -3.07%

S&P 500 52-wk: +10.20% YTD: -4.13% Wky: -2.27%

NASDAQ 52-wk: +11.15% YTD: -8.06% Wkly: -2.43%

SPDR Gold Shares ETF: 52-wk: +37.38% YTD: +13.67% Wkly: +2.55%

Weekly Performance:

• S&P 500: Declined by 2.3%
• Dow Jones Industrial Average: Decreased by 3.1%​
• Nasdaq Composite: Fell by 2.4%​

Friday's Rally (March 14):

• S&P 500: Increased by 2.1%
• Dow Jones Industrial Average: Rose by 1.7%​
• Nasdaq Composite: Advanced by 2.6%​

Contributing Factors:

• Trade Tensions: Escalating trade disputes, particularly between the U.S. and Canada, heightened market uncertainty.
• Economic Indicators: Weaker-than-expected inflation reports and concerns over potential recessionary signals influenced investor sentiment.
• Government Policies: Uncertainty surrounding President Trump's tariff policies contributed to market volatility.

Year-to-Date Performance:

• S&P 500: Down by 4.1%
• Dow Jones Industrial Average: Decreased by 2.5%​
• Nasdaq Composite: Fell by 8.1%​

Despite Friday's rally, the major indexes recorded their fourth consecutive weekly loss, reflecting ongoing investor caution amid geopolitical and economic uncertainties.

Investors are feeling defeated after the market’s rough week—and that means a Friday bounce could be more than a one-day blip.

We should be used to this by now. The S&P 500 index SPX +2.13% has dropped 2.5% this past week, on track for its fourth consecutive decline, while the Nasdaq Composite COMP +2.61% was falling 2.9% and the Dow Jones Industrial Average DJIA +1.65% was tumbling 3.4%. The damage would have been worse save for a Friday rally in all three indexes.

Even a little bit of good news couldn’t lift markets. The S&P 500 tried, but failed, to rally on Wednesday after the February consumer price index rose 2.8% from the previous year, down from January’s 3% reading. At first blush, weaker-than-expected inflation should allow the Federal Reserve to cut interest rates again, helping to boost economic growth. Investors didn’t take the bait. A wave of selling emerged, and stocks once again finished in the red.

The problem emanates from President Donald Trump. Tariffs, which could push prices higher and reduce consumer spending, would be bad enough, but the uncertainty over the policy is causing even more consternation. The concern is showing up among small businesses—the U.S. NFIB Small Business Optimism Index dropped for a second straight month in February. The University of Michigan’s consumer sentiment index fell well below expectations and indicated that even Republicans were feeling less confident.

As were investors. This past week, bearish responses in the American Association of Individual Investors survey were just over 60%, near the highest level in over a year. It’s also one of the most pessimistic results in history, according to data from ClearBridge Investments, just 10 points below the record high of about 70% during the peak of the 2008-09 financial crisis.

Unless the global economy is in for such a rare disaster, the market can’t get much more pessimistic. History suggests as much: The S&P 500 goes on to gain 13.6% on average over the following 12 months after a reading as low as it is now.

In a market this volatile, stocks could still fall. Keith Lerner, chief market strategist at Truist, warns that the S&P 500 could drop to roughly 5400, a major “support level.” But that’s only 3% below its current level, leaving plenty of opportunity for it to post a solid gain over the coming year.

That suggests that investors should start putting some cash to work in the market, while keeping some dry powder in hand in case the selling accelerates. We’ll have a better sense of things when trading begins on Monday. The past three weeks have followed the same pattern—the market drops to start the week, only to end it with a rally. If stocks can hold on to Friday’s gains as the new week begins, that could be a sign that the pain is over, at least in the short term.

We’ve always had a thing for happy Mondays.

Amazon.com may be the best bet among the Magnificent Seven. These other three stocks look attractive, too.

Factors I’m focusing on this week:

1) FOLLOW THROUGH WITH EXPANSION

2) REASONS DO NOT MATTER

DATA: Barron’s print edition page 28 3/17/25 Market Week Jacob Sonenshine

Paragraph: one ChatGPT market recap for the week of 3/10/25-3/14/25 As stated above

Paragraph: two Barron’s print edition 3/17/25 page 28 The Trader Jacob Sonenshine

Paragraph: one Barron’s print edition page 28 3/17/25 Market Week Jacob Sonenshine

Paragraph: two ChatGPT Market recap for the week of 3/10/25-3/14/25 as stated

Paragraph: three & four WSJ online edition 3/14/25 S&P 500, Nasdaq Post Their Best Day Since November Election Ryan Dezember

Paragraph: four Barron’s print edition 3/17/25 page12 Andrew Bary

Paragraph: five Closing remarks Richie Naso opinion

This content (“Content”) is produced by Richard Naso. The Content represents only the views and opinions of Mr. Naso who is compensated by TradeZero for producing it. Mr. Naso’s trading experiences and accomplishments are unique, and your trading results may vary substantially from his. TradeZero does not endorse the Content and makes no representations or warranties with respect to the accuracy of the Content or information available through any referenced or linked third party sites. The Content has been made available for informational and educational purposes only and should not be considered trading or investment advice or a recommendation as to any security.

Trading securities can involve high risk and potential loss of funds. Furthermore, trading on margin is for experienced investors and traders only as the amount you may lose can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses. Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risk of Standardized Options, also known as the options disclosure document (ODD) at

https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosur e-Document before deciding to engage in options trading.

TradeZero provides self-directed brokerage accounts to customers through its operating affiliates: TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of the Canadian Industry Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF).