Markets Drop, Resilience Rises

The first week of March proved to be a turbulent one for financial markets, as the S&P 500 suffered its worst performance since September of last year. With major indices retreating by more than 2%, investors felt the weight of economic uncertainty pressing down. The widespread downturn spared few sectors, though Health Care and Consumer Staples managed to eke out modest gains. Meanwhile, Energy and Financials bore the brunt of the declines, leading the market’s overall slide. As earnings reports continued to trickle in, many well-known stocks saw significant losses. Yet, despite the broad-based pullback, there were pockets of strength that offered a reminder of the market’s inherent dynamism.

Weekly Performance

Data Source: Factset®        Performance Period:      3/3/2025  to 3/7/2025

Last week’s economic calendar was rich with key data points, particularly regarding labor market health and business activity. The week kicked off with Manufacturing PMI climbing to 52.7, signaling expansion and outpacing its previous reading. Services PMI followed a similar upward trajectory, landing at 51% for the month. Meanwhile, construction spending dipped by 0.2% in January, but factory orders rebounded, rising 1.7% after a previous decline. Wholesale inventories also rose 0.8%, recovering from a prior contraction of 0.4%. However, the labor market painted a more complicated picture. According to the ADP employment report, private-sector job creation was far weaker than expected, with only 77,000 jobs added—well below the anticipated 148,000. The broader U.S. jobs report also fell short, recording just 151,000 new jobs. However, there were some silver linings: initial jobless claims remained lower than forecasted, and hourly wages continued to see steady growth. The week concluded with January’s consumer credit figure coming in at $18 billion, surpassing estimates, but still falling below the previous reading.

Looking ahead, this week’s economic calendar is lighter, but still packed with valuable insights. It kicks off with the NFIB Optimism Index, offering a snapshot of small business sentiment. January’s job openings report will provide another piece of the labor market puzzle, helping to gauge hiring trends and workforce demand. However, all eyes will be on the release of key inflation data, as both the Consumer Price Index (CPI) and the Producer Price Index (PPI) will shed light on how much consumers and suppliers are paying amid shifting economic conditions. The week will round out with the preliminary Consumer Sentiment Index for March, which will help gauge the mood of American consumers in the face of economic uncertainty.

Despite the broader market downturn, a few standout performers managed to rise above the sell-off. One such bright spot was Veeva Systems, a healthcare software company that soared more than 8% in a week when most stocks struggled. Investors rewarded Veeva for its stellar financial results, as the company exceeded expectations for both earnings per share and revenue. Veeva’s strong positioning within the resilient health care industry has made it a compelling play, particularly given its subscription-based model, robust customer relationship management systems, and increasing investment in AI-driven innovation. Time will tell how Veeva’s growth story unfolds, but for now, it remains a company to watch this year. Even amid market volatility and economic fluctuations, there are always reminders of resilience—both in financial markets and in life. As Psalms 103:2-4 reminds us: “Praise the LORD, my soul, and forget not all his benefits—who forgives all your sins and heals all your diseases, who redeems your life from the pit and crowns you with love and compassion.” Through every storm, God remains the foundation of grace, renewal, and unwavering strength.

Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights

 Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Faithward Advisors LLC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Dream More, Plan More, Do More is a registered trademark of Faithward Advisors, LLC, Reg. U.S. Pat. & Tm. Off. Any opinions expressed in this forum are not the opinion or view of Faithward Advisors or American Portfolios Financial Services, Inc. (APFS). They have not been reviewed by either firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.