Assalamu Alaykum,
Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the U.S. from March. Let’s get started.
Stock market updates
March brought deeper losses across major U.S. indices, reflecting heightened market volatility and investor caution. The S&P 500 dropped by 5.75% to close at $5,611, while the Dow Jones fell 4.19%, ending at $42,001. The Nasdaq saw a sharper decline of 8.17%, finishing at $17,299. The Russell 2000 also faced heavy losses, down 6.99% to $2,011. In contrast, the S&P MidCap 400 defied the broader trend, rising by 10.22% to $2,919, offering a rare bright spot in an otherwise tough month for U.S. markets.
- A U.S. bankruptcy judge has rejected Johnson & Johnson’s $10 billion settlement plan to resolve tens of thousands of lawsuits alleging its talc products cause ovarian cancer, marking the company’s third failed bankruptcy attempt. The judge ruled J&J did not belong in bankruptcy and that the proposal lacked sufficient support from claimants while also overreaching in shielding entities not in bankruptcy.
- Tesla has secured its first permit from California regulators, allowing it to operate a fleet for pre-arranged trips—a step toward its planned robotaxi service. However, the approval does not yet permit autonomous ride-hailing, as Tesla still needs additional permits from both the CPUC and DMV to operate fully driverless taxis for public use.
- Lululemon shares dropped 15% after the company issued weaker-than-expected 2025 guidance, despite beating Wall Street estimates for Q4 earnings and revenue. CEO Calvin McDonald cited economic uncertainty and inflation concerns affecting consumer spending, leading to lower U.S. store traffic.
- Tech stocks tumbled after Trump announced new tariffs ranging from 10% to 49% on imported goods, with Apple leading the decline, dropping over 6% in late trading. Given Apple’s reliance on Chinese manufacturing, the new tariffs sparked investor concerns about rising costs and potential supply chain disruptions.
- OpenAI expects its revenue to triple to $12.7 billion in 2025, according to a source familiar with the matter. The growth follows a surge in demand for generative AI, with Microsoft—its primary investor and partner—reporting $13 billion in annual AI-related revenue last quarter, up 175% year-over-year.
Top gainer and top loser Halal stocks in the USA
USA Economic updates
- Trump’s sweeping new import tariffs, including a 10% base duty on most goods and higher rates for key trading partners, have intensified global trade tensions, sending markets tumbling. China faces a 34% tariff, the EU 20%, and Japan 24%, prompting threats of retaliation. The U.S. import tax rate has surged to 22%, the highest since 1910, raising concerns about inflation, economic slowdown, and potential global recession.
- U.S. retail sales rebounded by 0.2% in February after a downwardly revised 1.2% drop in January, indicating moderate economic growth despite ongoing economic headwinds. Economists had expected a stronger 0.6% rise, but factors like new tariffs and federal job cuts weighed on sentiment.
- U.S. homebuilder sentiment fell to a seven-month low in March as tariffs on imported materials, particularly from China and Canada, increased construction costs. The NAHB/Wells Fargo Housing Market Index dropped to 39, below expectations of 42, erasing gains seen after Trump’s election.
- The Federal Reserve held interest rates steady at 4.25%-4.50%, citing uncertainty driven by Trump’s tariff policies, which have contributed to slower growth and higher inflation. Fed Chair Jerome Powell emphasized the “unusually elevated” uncertainty facing policymakers, while projections still indicate two rate cuts by year-end.
- The U.S. has expanded its export restrictions on Chinese firms, adding six subsidiaries of Inspur Group and around 80 other entities, primarily from China, but also from Taiwan, Iran, Pakistan, South Africa, and the UAE. The move aims to curb China’s advancements in supercomputing, AI, and hypersonic weapons.
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