Weekly Market Highlights. March 3 – March 7.

Market News

Here’s a quick recap of last week’s events (March 3 – March 7) in the US stock market. From major index movements to key economic events, stay informed about the trends that matter to halal investors like you.

Market Overview

  • All major U.S. indexes fell sharply, with the Russell 200 leading losses (-4.27%).
  • S&P 500, MidCap 400, and Russell 2000 all dropped over 3%, while the Dow Jones (-2.37%) erased most of its YTD gains.
  • Tariff uncertainty weighed on sentiment, as President Trump’s planned 25% tariffs on Canadian/Mexican imports and 10% on Chinese imports sparked investor caution.
  • A last-minute exemption on USMCA-covered goods helped, but the back-and-forth policy changes created uncertainty.

Economic Data Shows Mixed Signals

  • Manufacturing PMI fell to 50.3% (from 50.9%), with new orders dropping into contraction (48.6%)—a worrying sign for future production.
  • Services PMI increased to 53.5%, marking its 8th consecutive month of expansion, with employment in services hitting its highest level since Dec 2021.
  • The Fed’s Beige Book reported “modest growth” but flagged rising prices, weaker consumer spending, and tariff concerns.

Labor Market Remains Resilient

  • February nonfarm payrolls: +151K jobs (vs. 125K in January).
  • The unemployment rate ticked up to 4.1% from 4.0%
  • Strongest job gains in health care, finance, and transportation, while federal employment declined.

Key Takeaways & Market Outlook

  • Tariff uncertainty remains a major overhang for global trade and corporate earnings.
  • Economic data signals mixed growth, with weak manufacturing but strong services and job gains.
  • The Fed is in no rush to cut rates as inflation remains a concern.
  • Investors are in risk-off mode, moving away from stocks and into bonds.

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