US Stock Market Decline with Fed Meeting in Focus

2025-03-19 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stock Market Decline with Fed Meeting in Focus

US stocks fell on Tuesday, with the Nasdaq dropping over 300 points and the S&P 500 snapping a two-day winning streak. Investors are closely monitoring the Federal Reserve’s policy meeting and its outlook on the economic impact of ongoing trade tensions. Meanwhile, US and Russian leaders held discussions on a possible ceasefire in Ukraine.

The Federal Reserve’s two-day policy meeting began on Tuesday, with results set to be announced Wednesday.

Markets widely expect the Fed to keep interest rates unchanged. According to the CME FedWatch tool, the probability of rates remaining steady stands at 99%.

The Fed’s updated economic projections could provide insight into policymakers’ views on the potential economic effects of the ongoing tariff dispute.

Ryan Wang, an economist at HSBC, commented: “We anticipate a shift in the Fed’s tone toward a more cautious stance. Trade policy uncertainty and rising stagflation risks complicate the monetary policy outlook.”

US Stock Market Highlights

Tech stocks led the decline, with Super Micro Computer (-9%), Tesla (-5%), Nvidia, Meta (-3%), and Google (-2%) all falling. Amazon and Microsoft also slipped over 1%.

Sectors that underperformed included crypto stocks, cruise lines, and automakers, with Coinbase and Norwegian Cruise Line (-4%), and Strategy (-3%) among the worst performers.

Meanwhile, coal, precious metals, and diversified banks outperformed. US Steel (+4%), Newmont Mining, Mitsubishi UFJ (+3%), and Barclays (+2%) gained ground.

Chinese Stocks

Chinese stocks posted mixed results, with the Nasdaq Golden Dragon China Index down 0.18%.

  • Huya (-18%), DouYu (-10%), Xpeng, Beike (-7%), and Alibaba, Bilibili (-3%) led the declines.
  • Ascend Technology (+21%), Tencent Music (+15%), and Nio (+3%) bucked the trend.
US Stock Market Decline with Fed Meeting in Focus
(S&P 500 Index, 1-day chart)
  • Dow Jones: -260.32 points (-0.62%) to 41,581.31
  • Nasdaq: -304.55 points (-1.71%) to 17,504.12
  • S&P 500: -60.46 points (-1.07%) to 5,614.66

Hong Kong Market Market Highlights

Hong Kong stocks were mixed, with the Hang Seng Index slightly higher while tech stocks struggled.

  • Baidu (-3%), Meituan, Alibaba, Kuaishou (-1%) saw declines.
  • Lenovo (+2%) and Xiaomi (+1%) outperformed.
  • Property stocks slumped, with Sunac China (-6%) leading losses.
  • Robotics-related stocks rallied, with Yuejiang Robotics (+18%) surging.

Property Sector Struggles

Sunac China’s drop followed reports showing weaker home prices.

  • 18 cities saw new home prices rise, down from 24 cities last month.
  • 45 cities saw home prices decline, making up 64% of the market.
  • In the secondary market, only 3 cities saw price increases, while 65 cities recorded declines.
US Stock Market Decline with Fed Meeting in Focus
(Hang Seng Index, 1-day chart) 
  • Hang Seng Index: +0.15% to 24,777.01
  • Hang Seng Tech Index: -0.82% to 6,059.45
  • China Enterprises Index: -0.09% to 9,169.36

A50 & China A-Share Market Highlights

Mainland Chinese stocks opened lower but rebounded, with narrow-range fluctuations throughout the session.

  • Total market turnover: ¥9.40 trillion
  • 3,600+ stocks declined

Sector Performance

  • Gainers: Gearboxes, Brain Science, Biomass Energy, Photovoltaic Cutting Equipment, Castings, Wigs, Stamping Molds, Air Suspensions, POS Machines, Injection Molding.
  • Decliners: Copper Clad Laminates, Automotive Glass, HDI, PCB, AMD-linked stocks, Automotive PCB, Nvidia-related stocks, Glass Manufacturing, Conductive Agents, Power Equipment.
  • BYD rose 3%, reaching a new record high with a market cap exceeding ¥1.2 trillion.
US Stock Market Decline with Fed Meeting in Focus
(SSE Composite Index, 1-day chart) 
  • Shanghai Composite Index: -0.06% to 3,427.76
  • Shenzhen Component Index: -0.16% to 10,997.41
  • ChiNext Index: +0.07% to 2,230.24

Risk Disclosure

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Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein. 

Disclaimer

This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 
The above information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution. 

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