S&P 500 Drops 1.0% on March 5, 2025: Target Surges 12% After Stellar Holiday Quarter Results
On March 5, 2025, the S&P 500 experienced a 1.0% decline amid tech sector setbacks and rate cut uncertainties, while Target's impressive holiday performance propelled its stock significantly higher.
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Highlights from March 5, 2024 Market Activity
- The S&P 500 declined by 1.0%, pressured by doubts over interest rate cuts and a downturn in technology stocks.
- Albemarle shares plunged nearly 18% following its announcement of a $1.75 billion public offering to fund expansions in Australia and China.
- Target's stock soared 12% after reporting strong holiday quarter earnings and optimistic full-year comparable store sales forecasts.
Major U.S. stock indices fell Tuesday as technology shares faced significant headwinds.
Apple (AAPL) shares fell 2.8%, impacted by reports of declining iPhone sales in China. Tesla (TSLA) shares dropped 3.9% after a suspected arson incident forced a production halt at its Berlin factory.
The S&P 500 and Dow Jones Industrial Average both decreased by 1.0%, while the Nasdaq Composite slid 1.7%, with tech sector concerns weighing heavily.
Albemarle (ALB), the world's largest lithium producer, saw the steepest loss on the S&P 500, tumbling 17.9% after unveiling plans for a $1.75 billion capital raise through a public offering of depository shares aimed at funding capital projects abroad.
Semiconductor company Qorvo (QRVO) retreated 5.8% following a recent peak, as softness in its cellular base station segment tempered otherwise strong demand across defense, aerospace, and automotive markets.
The technology sector's struggles extended to chipmakers amid excitement over artificial intelligence growth prospects. The Philadelphia Semiconductor Index (SOX) dropped over 2%, with Intel (INTC) posting the Dow's weakest performance, down 5.4%.
Target (TGT) bucked the trend with a 12% gain, driven by robust holiday quarter earnings surpassing expectations and a positive outlook on store sales growth. The retailer also announced plans to open 300 new U.S. stores and launch the Target Circle 360 membership program in April.
DaVita (DVA), specializing in kidney care, rose 7.1% after Novo Nordisk (NVO) disclosed limited mortality benefits of its weight-loss drug Ozempic for chronic kidney disease patients, suggesting sustained demand for DaVita's dialysis equipment.
Regional banks rebounded from last week’s setbacks. New York Community Bancorp (NYCB) shares surged 17.4% despite recent credit rating downgrades, supported by stable deposit levels. Citizen's Financial (CFG) and Zions Bancorporation (ZION) also gained 5.2% and 4.5%, respectively.
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