Market Monitor March 11 ( Super Micro Computer, AppLovin UP, Kohl's, American Airlines DOWN)

Wall Street Struggles Amid Tariff Uncertainty and Economic Concerns

U.S. stock markets closed lower on Tuesday after another highly volatile trading session, as investors reacted to new tariff policies and fresh signs of an economic slowdown.

While the Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 0.8%, and the Nasdaq Composite slipped 0.2%, bouncing back slightly from deeper losses earlier in the day.

Tariffs on Canadian Imports Shake Markets

Investor sentiment took a hit when President Donald Trump announced that tariffs on Canadian steel and aluminum imports would double to 50% starting Wednesday. The decision was a retaliatory move against Ontario’s imposition of a 25% tariff on electricity exports to the U.S.

However, later in the evening, after Ontario’s premier agreed to withdraw the electricity tariff, a White House advisor suggested the U.S. might reconsider the additional steel and aluminum levies.

Trump’s trade policies have caused widespread market uncertainty, with concerns that increasing tariffs could weaken economic growth, drive inflation higher, and disrupt businesses dependent on global supply chains.

Stocks of major auto manufacturers like Ford (F | 3%) and Stellantis (STLA | -3%), which rely heavily on imported parts, declined on the news.

Consumer Spending and Travel Sector Hit Hard

Beyond tariffs, signs of weakening consumer confidence weighed on the market. Delta Air Lines (DAL | -7%) issued a disappointing earnings forecast, citing lower travel demand amid growing economic uncertainty.

Other airlines followed suit, with American Airlines (AAL | -8%) and United Airlines (UAL | -2%) also declining. However, Southwest Airlines (LUV | +8%) bucked the trend after announcing plans to introduce baggage fees, reversing a long-standing policy.

Retailers also suffered, with Kohl’s (KKS | -24%) plunging after forecasting a 4-6% drop in sales for 2025, far worse than analysts expected. The company pointed to rising import costs and cautious consumer spending, as households cut back on discretionary purchases.

Tech Stocks See Mixed Performance

Tech stocks, which took a heavy beating on Monday, saw a mixed day. Apple (AAPL | -3%) extended its decline after reports that it would delay the launch of AI-driven Siri features, raising concerns about future iPhone sales.

Alphabet (GOOG | -1%) also edged lower. However, Tesla (TSLA | +4%) rebounded after its 15% drop on Monday, while chipmakers Nvidia (NVDA | +1.7%) and Broadcom (AVGO | +3%) posted gains.

In contrast, Super Micro Computer (SMCI | +11%) led the S&P 500 after strong investor interest in AI-related stocks. Palantir (PLTR | +2%) and AppLovin (APP | +8%), both of which had suffered steep losses recently, also gained ground.

Bitcoin and Treasury Yields React to Market Jitters

Cryptocurrency-related stocks saw a recovery as Bitcoin climbed to $83,100, rebounding from a low of $76,600. MicroStrategy (STRK | +9%), a major holder of Bitcoin, benefited from the price surge.

Meanwhile, Treasury yields fluctuated throughout the day as investors sought safer assets amid economic uncertainty. The 10-year yield rose to 4.28%, rebounding from an earlier low of 4.15%.

Looking Ahead: Key Economic Data on Inflation

Investors are now eagerly awaiting the Consumer Price Index (CPI) report, set to be released on Wednesday. The data will provide insights into inflation trends, which could influence Federal Reserve policy on interest rates.

Despite the market turbulence, analysts caution that policy uncertainty, economic slowdown fears, and volatile trade relations will likely keep investors on edge in the coming weeks.

Daily Market Analysis – March 11, 2025 (After Market Close)

SPY (S&P 500 ETF)

• Current Price: 555.92 (-0.83%)
• Short-Term Trend: Down (-3.63% over the past week, -6.45% over two weeks, -8.09% over a month)
• Long-Term Trend: Mixed (-7.99% over three months, -1.08% over six months, +9.04% over a year)

Key Technical Levels:

• Resistance: Around 600 (strong overhead supply)
• Support: Around 540-550 (previous buying interest zone)

Analysis:

• SPY has been in a clear downtrend over the short term.
• It has approached a critical support zone (540-550).
• If this support level holds, a potential bounce could occur. Otherwise, further declines toward 520 could follow.

QQQ (Nasdaq-100 ETF)

• Current Price: 471.6 (-0.24%)
• Short-Term Trend: Down (-4.83% over one week, -8.13% over two weeks, -10.89% over a month)
• Long-Term Trend: Mixed (-11.11% over three months, -0.79% over six months, +8.68% over a year)

Key Technical Levels:

• Resistance: Around 500 (significant overhead resistance)
• Support: Around 445 (potential bounce area)

Analysis:

• The short-term trend is bearish, and the ETF has lost nearly 11% in a month.
• Although the long-term trend is still neutral, the recent weakness suggests a further breakdown if the 490/500 zone cannot be regained.
• Next support zone is around 440/450

IWM (Russell 2000 ETF)

• Current Price: 200.75 (-0.01%)
• Short-Term Trend: Down (-2.75% over one week, -6.81% over two weeks, -11.57% over a month)
• Long-Term Trend: Down (-13.87% over three months, -7.42% over six months, -0.82% over a year)

Key Technical Levels:

• Resistance: Around 215 (major overhead supply)
• Support: Around 195-200 (historical buying interest)

Analysis:

• IWM remains the weakest of the three ETFs.
• It is testing a critical support area (195-200). If this level fails, further downside is possible.
• The long-term trend is clearly bearish, with losses of nearly 14% in three months.
• The price action suggests no immediate signs of reversal, so caution is advised.

Sector Analysis

• Next update (weekly) on friday, march 14

Market Breadth Analysis for March 11, 2025

• A sharp increase in advancing stocks (40.3% vs. 17.7%) suggests a short-term relief rally.
• The percentage of declining stocks dropped significantly (57.1% vs. 80.9%), meaning selling pressure eased.
• More stocks gained over 4%, while fewer stocks lost over 4%, signaling a less bearish environment.
• Long-Term Trend Remains Weak: Only 30.6% of stocks are above their 200-day SMA, down from 33% the day before.
• Fewer new lows (5.8% vs. 14.3%) indicate that the worst selling pressure might be behind us, but very few new highs (0.5%) show no strong leadership emerging. Potential Short-Term Bottom Formation?

The sharp drop in stocks making new lows suggests that the market might be trying to stabilize. However, moving average participation is still poor, meaning sustained upside is not yet confirmed.