Weekly Financial Highlights: Stock Weakness, Treasury Yields Steady, Bitcoin Rises

Image Source : Krish Capital Pty Ltd

Index Update

Former President Trump did not rule out a recession, calling the economy a "period of transition," while Fed Chair Powell noted rising uncertainty. Traders await key inflation data as jobs data signals a cooling labor market. Megacap stocks, including Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, and Tesla, declined in premarket trading.

Market Movers

On Friday, the top gainers were  GEN Restaurant Group, Inc. (+22.79%), followed by Walgreens Boots Alliance, Inc. (+7.36%). On the contrary Intuitive Machines, Inc. (-37.39%) and Smith & Wesson Brands, Inc. (-11.89%) declined the most the same day.

Commodities Update

Brent crude oil futures fell to $70.2 per barrel due to weak economic data from China and uncertainty over U.S. tariffs, raising demand concerns. Deflation in China and shifting U.S. trade policies added pressure, while OPEC+ confirmed output hikes. However, potential U.S. sanctions on Russia and OPEC+'s flexibility to adjust production helped limit losses.

Macro Update

The 10-year US Treasury yield held at 4.28% as investors awaited key economic data on inflation and consumer sentiment. Fed Chair Powell reassured markets about economic stability but saw no urgency for rate cuts, citing trade and policy uncertainties. Former President Trump also did not rule out a recession amid ongoing tariff policies.

Futures Update

US stock futures declined sharply on Monday, with futures on the three major indexes dropping nearly 1%, extending the previous week's losses when the S&P 500 saw its worst weekly performance since September. Concerns about the US growth outlook continue to rise.

Bitcoin traded at 82,257 on March 10, rising 2.01% from the previous session. It gained 14.08% over the past four weeks and 14.01% over the last year.

On Friday, stocks experienced notable volatility throughout the trading session, with the major indices fluctuating around the unchanged line before ultimately closing on a positive note. The Nasdaq and S&P 500 faced pressure after initially lacking direction, reaching five-month intraday lows before making a recovery in the afternoon. As the trading day concluded, both indices managed to retain their gains. The Nasdaq rose by 126.97 points, or 0.7 percent, reaching 18,196.22, while the S&P 500 increased by 31.68 points, or 0.6 percent, to settle at 5,770.19. However, the major indices remained close to their lowest levels as the session neared its end. Indicators suggest potential resistance ahead, indicating the likelihood of a continued bearish trend. The 14-period RSI is currently below the neutral midpoint, reflecting a negative sentiment, with key resistance at 5,850 and support around 5,600.