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17.03.2025 02:49 PM
Stock market analysis on March 17: S&P 500 and Nasdaq remain under pressure

Futures on US stock indices declined after Treasury Secretary Scott Bessent called the recent market drop "favorable," reinforcing expectations that the Trump administration is unlikely to intervene to stop the decline.

The S&P 500 and Nasdaq 100 futures fell by 0.6%. Meanwhile, the European Stoxx 600 index showed little change, while Asian indices gained on reports of strong consumption growth in China.

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On Sunday, the US Treasury Secretary said he was not concerned about the drop in US stocks, even after the S&P 500 lost nearly $5 trillion in value. His comments were a clear blow to those hoping that President Donald Trump would take action to ease the market impact of his policies.

The statement raised concerns among Wall Street insiders, who had expected Bessent to serve as a moderating voice in Trump's administration, balancing the president's aggressive stance on tariffs. With no reassuring signals from administration officials, a further stock market correction appears increasingly likely.

Talks of a recession fueled by trade wars and protectionism continue to deter investors from riskier assets. Any negative trigger—be it weak economic data or aggressive government rhetoric—could accelerate sell-offs. Tired of ongoing uncertainty, investors are locking in profits, reinforcing the downward trend.

Geopolitical tensions remain high, adding to market anxiety. Events in the Middle East are creating a nervous backdrop, making it difficult to expect a sustained rally based on fundamental factors.

Oil prices climbed after China, the world's largest importer, announced plans to stimulate consumption by increasing household incomes. Meanwhile, the US prepared for further strikes on Houthi forces in Yemen.

The US dollar and Treasury bonds traded mixed.

US Defense Secretary Pete Hegseth stated that military strikes on Yemen's Houthi rebels will continue until the group stops attacking civilian and military ships in the Red Sea.

Investors are closely watching several central bank meetings in the coming days.

The Bank of Japan is expected to keep rates unchanged after last month's hike.

The Bank of England is also likely to leave its policy steady.

Federal Reserve Chair Jerome Powell will announce the US interest rate decision on Wednesday. His key challenge is to reassure investors that the economy remains on solid ground while signaling the Fed's willingness to step in with support if needed.

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As for the technical picture of the S&P 500, the downtrend continues. Today, buyers need to break through the $5,617 resistance level to sustain the rally and open the path toward $5,645. Securing control above $5,670 will further strengthen bullish momentum.

If risk appetite weakens, buyers must defend $5,586. A failure there could send the index quickly down to $5,552, with $5,520 as the next target.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
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