US Stock Market March 2023 Update: Mixed Trading Amid Inflation and Interest Rate Concerns
Explore how US stock markets started March 2023 with mixed results as inflation, interest rates, and economic uncertainties continue to influence investor sentiment.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams of anchors, reporters, and editors to deliver impactful news coverage on major events.
Highlights to Know
- The US stock market opened March 2023 with a blend of gains and losses as investors remained cautious about rising interest rates and economic outlooks.
- The Nasdaq and S&P 500 closed Wednesday down approximately 0.7% and 0.5%, respectively, while the Dow Jones Industrial Average saw a slight uptick.
- Energy sector stocks, particularly those linked to fossil fuels and solar energy, led the day’s positive performers.
The first trading day of March reflected ongoing worries about inflation pressures and interest rate hikes. Comments from two Federal Reserve bank presidents emphasized the necessity to continue increasing borrowing costs to tame inflation. Meanwhile, US manufacturing data indicated contraction for the fourth straight month, adding to economic concerns. The Dow managed a marginal gain, whereas the S&P 500 and Nasdaq experienced modest declines near 0.5%.
The 10-year Treasury yield climbed to 4%, marking its highest level since early November. This rise in yields negatively impacted major tech stocks, which are sensitive to higher borrowing expenses. Shares of Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) all slipped. Tesla (TSLA) shares fell ahead of its investor day, while Rivian Automotive (RIVN) shares plunged after missing revenue targets and issuing a recall of nearly 13,000 electric vehicles due to a sensor defect.
Retail stocks faced significant challenges. Lowe's (LOW) shares declined after reporting fourth-quarter revenue and full-year guidance below expectations. Competitor Home Depot (HD) also saw share prices drop. Kohl's (KSS) shares were dragged down by a larger-than-anticipated loss, falling sales, and a weak forecast. Additionally, Advance Auto Parts (AAP) and Target (TGT) were among the poorest performers in the S&P 500.
Energy Sector Surges
Fossil fuel companies dominated the list of top gainers, including Valero Energy (VLO), Phillips 66 (PSX), Marathon Petroleum (MPC), and EOG Resources (EOG). However, First Solar (FSLR) took the lead with shares reaching an all-time high following a strong financial report and optimistic guidance. SolarEdge Technologies (SEDG), Enphase Energy (ENPH), and other solar sector stocks also experienced gains.
Caterpillar (CAT) shares rose nearly 4% after the company reached a contract deal with the United Auto Workers Union, averting a strike. Meanwhile, 3M (MMM) shares increased 2% after the company cited Defense Department data supporting its position in a class-action lawsuit involving earplugs.
Oil futures recovered from earlier losses and moved higher, while gold prices increased by 0.4%. The US dollar strengthened against the British pound but weakened against the euro and Japanese yen. Major cryptocurrencies also traded higher during the session.
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