Market Wrap | Market Turmoil as Major Indices Plunge Amid Inflation Fears and Regulatory Challenges

March 28, 2025 (Friday), the S&P 500 Index fell 1.97%, the Dow Jones Industrial Average dropped 1.69%, and the Nasdaq Composite Index declined 2.70%. Fed's Daly reiterated a focus on inflation, signaling the importance of monetary policy in controlling price levels. Concurrently, the CFTC reported an increase in net short positions on the S&P 500, indicating growing bearish sentiment among traders. These developments reflect concerns over inflation and market volatility, contributing to negative sentiment and declines across major indices.

The S&P 500 index saw mixed performance across various sectors. The technology, discretionary consumer goods, communication services, industrial, and financial sectors underperformed the broader market. Conversely, the utilities sector bucked the trend and posted gains.

Today, the U.S. stock market saw significant movements across several major companies. Microsoft's stock dropped by 3.02% as the tech giant faces potential regulatory challenges due to antitrust investigations. Palantir's stock declined by 4.71% amid concerns over inflation and trade tensions. Netflix's stock fell by 4.39% due to disappointing economic reports and rising inflation concerns. Oracle's stock dropped by 3.37% after the U.S. Department of Defense canceled a major contract with the company due to significant budget overruns and delays. Mastercard's stock decreased by 3.04% following the sale of a significant amount of company stock by its CEO, Michael Miebach, potentially signaling a lack of confidence. Meta's stock fell by 4.29% in premarket trade due to a dismal forecast. Tesla's stock dropped by 3.51% as the company faces production challenges due to supply chain disruptions and increasing competition in the EV market. Amazon.com's stock declined by 4.29% driven by pricing cuts in its AI-driven cloud infrastructure amid weakened investor sentiment. Alphabet's stock dropped by 4.89% and 4.88% for its Class C and Class A shares, respectively, following a $100 million settlement for a class-action lawsuit related to advertising practices. Bank of America's stock decreased by 3.08% after Financial Counselors Inc. decreased its holdings in the bank by 31.3% during the fourth quarter.

Portage Biotech's stock surged over 100%, driven by promising preclinical data for its selective Adenosine A2B receptor inhibitor, PORT-7, in mesothelioma treatment. Lexicon Pharmaceuticals rose over 60%, as it will receive $75 million upfront and up to $1 billion in total payments from Novo Nordisk for LX9851. Sharps Technology dropped over 70%, after filing for an offering of 1.05 million shares. Milestone Pharmaceuticals fell over 60%, following a Complete Response Letter from the FDA for its drug application.

Elon Musk's XAI has acquired X via an all-stock transaction, valuing XAI at $80 billion and X at $33 billion. Blackstone is considering investing in a US spinoff of TikTok, indicating interest in the rapidly evolving social media landscape. OpenAI's latest funding round highlights a $20 billion valuation condition, reflecting the significance of AI advancements in the tech sector. The Federal Reserve's Barr has stated that AI is expected to notably impact productivity and the broader economy, suggesting potential influences on market dynamics and economic projections. These developments are likely to impact investor sentiment and strategic decisions in technology and financial markets.