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Sharp reversal in US markets

Amid market volatility and uncertainty, US stock indices experienced a sharp decline last week. The Dow Jones Index (#DJI30) fell by 3.5%, the S&P 500 (#SP500) dropped by 4.1%, and the Nasdaq-100 (#NQ100) lost 5.5%. 

Investors reacted nervously to new economic data, including rising inflation and expectations of interest rate hikes, leading to a sell-off in stocks and a decline in key indices. The drop was particularly significant in the technology and consumer sectors, where companies like Apple and Tesla lost around 6-7% of their value. 

However, starting March 13, 2025, the indices began to recover: #DJI30 gained 2.3% #SP500 rose by 2.5% #NQ100 increased by 3.1% 
 

Key factors behind the market recovery: 

• Improvement in unemployment data: Labor market statistics played a crucial role in the market recovery. The US unemployment rate fell to 3.4% in February 2025, marking a record low in recent decades. 
  

• Stabilization of inflation and interest rate expectations: Although inflation in the US remains high, recent data showed a slowdown in its growth. Reduced inflationary pressure gave investors hope that the Federal Reserve (Fed) might slow down the pace of interest rate hikes. 
  

• Growth in consumer spending: One of the key drivers of the recent market recovery has been the increase in consumer spending. In Q1 2025, consumer demand in the US showed strong performance. 
  

• Absence of new geopolitical risks: There have been no major geopolitical crises or new threats recently, allowing financial markets to stabilize. 
  
  

• Positive corporate earnings reports: 
   
  
• #Microsoft (MSFT): Shares rose by 4.2% due to strong cloud services and software revenue. 
  
  
• #Google (GOOGL): Stock increased by 3.7% thanks to higher advertising revenue. 
  
  
• #Apple (AAPL): Shares climbed 2.9%, supported by strong sales. 
  
  
• #Tesla (TSLA): Stock surged 5.6% on strong EV sales and optimistic profit projections. 
  

So despite last week’s market downturn, the current situation in the US stock market signals a potential recovery and a more positive trend in the coming weeks. 

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