Major US Stock Indexes Stage Last-Minute Rally

On Friday, March 21, 2025, the major US stock indexes staged a last-minute rally, snapping their weekly losing streaks and closing higher. The Nasdaq Composite climbed 0.5%, while the S&P 500 and Dow Jones Industrial Average both eked out gains of 0.1%. This rally came after a week of volatility, with the S&P 500 and Nasdaq declining in each of the last four weeks, and the Dow entering Friday's session on a two-week losing streak. The rally was driven by a combination of factors, including the Federal Reserve's decision to hold interest rates steady, an updated economic outlook, and positive performance from big tech stocks.

The Federal Reserve's decision to hold interest rates steady on Wednesday provided a boost to the market. The Fed's updated economic outlook noted that growth had remained solid up to the present, despite growing uncertainty. This stability in interest rates and the Fed's reassurance about the economy's solid growth helped to rally stocks. However, the rally stalled on Thursday due to uncertainty about the economic impact of tariffs, casting doubt on whether stocks could rebound out of their correction.

Despite the uncertainty, big tech stocks were mostly higher on Friday. Tesla (TSLA) advanced 5.3% to lead the Magnificent Seven, while Apple (AAPL) rose 2%, Meta (META) added 1.8%, and Microsoft (MSFT) gained 1.1%. This positive performance in big tech stocks contributed to the overall market rally. However, not all tech stocks were winners. Nvidia (NVDA) was the laggard of the group, falling 0.7%.



The rally was also boosted by Boeing's (BA) contract win. Shares of Boeing jumped 3.1% after President Donald Trump named the plane maker the winner of a contract to build the Air Force's next-generation F-47 fighter jet. This significant contract win provided a boost to the Dow Jones Industrial Average, which includes Boeing as a component.

Despite the rally, there are still concerns about the economic impact of tariffs. The Fed's updated economic outlook noted that the economic outlook had grown more uncertain, and the rally stalled on Thursday due to these concerns. However, the market's resilience and the Fed's reassurance about the economy's solid growth helped to overcome these concerns, leading to the last-minute rally.

In conclusion, the last-minute rally that allowed the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average to close higher on Friday, March 21, 2025, was driven by a combination of factors, including the Federal Reserve's decision to hold interest rates steady, an updated economic outlook, positive performance from big tech stocks, and Boeing's contract win. However, there are still concerns about the economic impact of tariffs, and the market's resilience will be tested in the coming weeks.