Mixed Market Signals with Chip Stocks Supporting Gains

Mixed market conditions arise as the S&P 500 sees slight gains led by strong performance in chip stocks. While the broader market is held back by losses among the Magnificent Seven stocks, economic data shows some promise ahead.

Date: 18-03-2025

AI Rating: 5

Earnings Reports and Economic Indicators: The report highlights mixed signals in the stock market, primarily driven by movements in chip stocks, which have shown strength today and provided some support for the overall market. Advanced Micro Devices is noted for being up more than +4%, reflecting positive sentiment in the chip sector. However, key economic indicators such as the February retail sales data are presenting a mixed picture: retail sales rose by +0.2% month-over-month, which was weaker than the expected +0.6%, although retail sales excluding autos met expectations (+0.3% month-over-month).

Manufacturing and Housing Data: The manufacturing survey's results from March did not meet expectations, falling to a 14-month low of -20.0, suggesting a weak trend in the sector. Similarly, the housing market index unexpectedly dropped to a 7-month low of 39, indicating ongoing challenges in the housing sector.

Geopolitical and Tariff Concerns: Geopolitical risks are undercutting stocks, particularly with recent US military actions. Importantly, new tariffs imposed by the US government are impacting sentiment, with fears that these economic regulations could further weaken corporate earnings growth. This evolving landscape could affect market performance and corporate profitability moving forward.

Individual Stock Movement: Notably, Science Applications International Corp has seen a positive shift after reporting a Q4 adjusted EPS of $2.04, outperforming expectations significantly, which could enhance investor confidence. On the other hand, Incyte's stock fell by more than -10% following disappointing trial data, negatively impacting its stock performance. This blend of positive and negative performance from individual companies demonstrates the volatility faced by investors.

Stocks: AMD NVDA META AMZN AAPL MSFT TSLA INTC SAIC NFLX NCLH SFM MNDY NKE AFRM INCY CION