S&P 500 Drops 0.7% on March 8, 2025: Costco Shares Fall 7.6% After Revenue Miss
On March 8, 2025, the S&P 500 declined by 0.7%, retreating from record highs amid mixed corporate earnings and cooling job market signals that raised hopes for Federal Reserve rate cuts.
Michael Bromberg is a seasoned finance editor with over ten years of experience simplifying complex financial subjects into clear, accessible insights. He holds a Bachelor of Arts in Literature from the University of Wisconsin-Madison and a Master's in Linguistics from Universidad de Antioquia in Medellin, Colombia.
Key Highlights
- The S&P 500 fell 0.7% on March 8, 2024, pulling back from all-time highs despite encouraging signs of a slowing labor market that boosted expectations for interest rate reductions.
- Costco shares plunged 7.6% after the retailer missed sales projections and chose not to raise membership fees, disappointing investors.
- Cruise line Carnival Corp. shares gained 4.5% following analyst upgrades and potential guidance increases.
Major U.S. stock indices closed lower on the final trading day of the week.
The February jobs report revealed a rise in unemployment, strengthening market bets that the Federal Reserve may cut rates by mid-2024. Nevertheless, the technology sector, which had driven recent market highs, lost momentum.
The S&P 500 dropped 0.7%, the Nasdaq declined 1.2% due to tech stock weakness, and the Dow Jones Industrial Average slipped 0.2%.
Costco Wholesale (COST) suffered the largest loss on the S&P 500, falling 7.6% after reporting mixed earnings. While its fiscal second-quarter profits exceeded expectations, sales fell short. The company held membership fees steady but left the door open for future increases.
Semiconductor giant Broadcom (AVGO) shares declined 7.0% after reaffirming its full-year guidance, disappointing investors who anticipated an upgrade following strong first-quarter revenue. Other chipmakers, including AI leader Nvidia (NVDA), also saw declines, with Nvidia down 5.6%.
Maryland-based utility Constellation Energy (CEG) dropped 5.0%, giving back some gains from late February after issuing robust annual guidance and raising its dividend.
Etsy (ETSY) was the day’s top performer on the S&P 500, rising 5.7%. The online marketplace’s focus on handmade and unique items helps it stand out amid fierce e-commerce competition.
Cruise operator Carnival Corp. (CCL) climbed 4.5% after Stifel analysts raised their price target, citing strong demand and pricing power that could lead to an upward revision in upcoming guidance.
Biotech company Moderna (MRNA) gained 3.6%. Despite declining COVID-19 vaccine sales, Moderna reported a surprising fourth-quarter profit thanks to effective cost management and promising results from personalized cancer vaccine trials in partnership with Merck (MRK).
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