• Stocks retraced and moved sharply lower. After starting the week on a positive note, the stock market turned south now that tariff relief is further away than hoped. U.S. equity markets closed Friday, down 1.5% to 2.5% across the board. The S&P 500 is about 1% away from re-testing the recent lows on March 13. Uncertainty around tariff policy, as well as fresh sentiment data is putting investors into a panic. The S&P 500 is on pace for the second month of declines and is down around 5% for the year. The Nasdaq is down nearly 10% this year thus far.
• An index of U.S. large-cap growth stocks dragged. The growth index was down about 2.6% for the week while a value index slipped 0.4%. Year to date, the growth index was down 10.0% versus a 1.2% gain for its value peer.
• Latest sentiment data looks worrisome. The Michigan Consumer Sentiment survey was revised lower from 57.9 to 57 in March, the lowest reading since November 2022 and reflecting a softening mood from consumers amid the uncertain policy backdrop. 
• Personal consumption expenditure (PCE) inflation was slightly better than expected. Headline PCE inflation for February was in-line with expectations at 2.5% year-over-year, steady versus last month's reading. Core inflation, excluding food and energy, however, was up 2.8%, above forecasts of 2.7% and last month's reading of 2.6%. Personal consumption rebounded somewhat in February, up 0.4% for the month after falling 0.2% the prior month. 
• The bond market remains a safe haven. Though yields have come down from recent highs, it is still the best asset class of 2025. The 10-year Treasury yield has fallen from about 4.8% in mid-January to around 4.25% on Friday.
• U.S. economic data still appears healthy. The third estimate for fourth quarter real GDP was revised up from 2.3% to 2.4%, driven primarily by downward revisions to imports. Looking ahead, the first estimate of first-quarter 2025 GDP is scheduled to be released on April 30, with most economists expecting annual growth to come in below 2.0%.
• New tariffs hit auto stocks. President Trump announced plans to slap 25% tariffs on vehicles not made in the U.S.A, hitting auto stocks pretty hard.  At just over 50% made in the USA, General Motors is especially vulnerable to the tariffs, explaining why its stock tanked by 7% on Thursday. Ford is right behind Tesla at 75% made in the USA, but its stock also got hammered, falling 3.5% on tariff Thursday. More clarity on tariff policy is expected on April 2 as the U.S. administration unveils its reciprocal tariff policy. 
• Job data. On the economic front, initial jobless claims for last week were 224,000, little changed from the prior week and highlighting that labor market conditions remain healthy. The next monthly labor market report due out on Friday will show whether the moderate slowdown in jobs growth seen in the first two months of 2025 extended into March. In February, the economy generated 151,000 new jobs, up slightly from 125,000 in January but well below the figures in the last two months of 2024. 
• Tech stocks dragged on NVIDIA concerns. NVIDIA could face more stringent regulations in China, which weighed on sentiment for the broader technology sector. 
• Gold kept sparkling. The price of gold climbed for the fourth week in a row, extending a year-to-date surge that briefly pushed the precious metal’s price above the $3,100-per-ounce level for the first time. On Friday afternoon, gold was trading around $3,116. The metal was up about 17% year to date.

• Nvidia (NVIDA)
• Palantir Technologies (PLTR)
• Nio (NIO)
• Ford (F)
• Tesla (TSLA)

Biggest Gainers

• Harmony Gold Mining Company (HMY) – +9.50%
• MicroAlgo, Inc. (MLGO) – +8.85%
• Gold Fields Limited (GF) – +4.53%
• Soleno Therapeutics (SLNO) – +6.83%
• W.R. Berkley Corp. (WRB) – +7.53%

Biggest Losers

• Tonix Pharmaceuticals (TNXP) – 24.37%
• AAR Corp. (AIR) – 16.40%
• lululemon athletica (LULU) – 14.19%
• Svenska Handelsbanken AB (SVNLY) – 12.58%
• Cocentrix Corp. (CNXC) – 12.44%

Weekly Notables

Elon Musk Startup Bought X

Elon Musk's AI startup, xAI, has acquired his social media platform X, formerly known as Twitter, in an all-stock deal, he announced in a post on X Friday. "xAI has acquired X in an all-stock transaction," Musk said. "The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)."
 

Novo Nordisk Diabetes Pill Shows Cardiovascular Benefits

Novo Nordisk said its diabetes pill Rybelsus showed cardiovascular benefits in a late-stage trial. Rybelsus, the once-a-day oral formulation of the companyh's diabetes injection Ozempic, lowered the risk of cardiovascular-related death, heart attack and stroke by 14% compared to a placebo after four years on average in patients with diabetes and established heart disease, with or without chronic kidney disease.

The Week Ahead

• Potential market moving catalysts this week: Monday (3/31): Chicago PMI. Tuesday (4/1): Construction Spending, ISM Manufacturing Index. Wednesday (4/2): ADP Employment Change, EIA Crude Oil Inventories, Factory Orders, MBA Mortgage Applications Index. Thursday (4/3): Continuing Claims, EIA Natural Gas Inventories, Initial Claims, ISM Services, Trade Balance. Friday (4/4): Nonfarm Payrolls, Average Workweek, Average Hourly Earnings, Unemployment Rate.
• Earnings on deck this week: Monday (3/31): Loar Holdings (LOAR), PVH Corp. (PVH). Tuesday (4/1): nCino Inc. (NCNO). Wednesday (4/2): UniFirst Corp. (UNF), RH Inc. (RH), Blackberry Ltd. (BB). Thursday (4/3): Conagra Brands Inc. (CAG), Acuity Brands (AYI), Lamb Weston Holdings Inc. (LW), Lindsay Corp. (LNN), Guess? Inc. (GES). Friday (4/4): no reports.