BoykoWealth.com — Automated Daily Report on World Macroeconomic News for March 19, 2025
A comprehensive summary of the news, covering GDP, inflation, unemployment, consumer confidence, equity markets, fixed income and interest rates, commodities, currencies, economic indicators, geopolitical developments, and new technology news.
GDP: The Federal Reserve has downgraded its collective outlook for economic growth, now projecting the U.S. economy to accelerate at just a 1.7% pace this year, down 0.4 percentage points from the last projection in December. This revision reflects concerns over the impact of tariffs and a slowing economy.
Inflation: Core inflation is expected to grow at a 2.8% annual pace, up 0.3 percentage points from the previous estimate. The Federal Reserve Chair Jerome Powell described tariff-driven inflation as “transitory,” suggesting it will be largely confined to this year.
Unemployment: The Federal Reserve remains attentive to risks on both sides of its dual mandate, which includes maintaining full employment. However, specific unemployment figures for March 19, 2025, were not detailed in the latest reports.
Consumer Confidence: Recent economic data has provided a mixed picture of the U.S. economy. Housing starts increased by 11.2% in February, with single-family starts rising 11.4%. However, building permits decreased by 1.2%, indicating potential future declines in construction activity.
Equity Markets: Wall Street closed higher on Tuesday, March 18, 2025, as investors assessed economic data while anticipating a Fed rate cut in June. The S&P 500 Index rose 1.08% to close at $5,675.29. The Nasdaq Composite Index increased by 1.41% to close at $17,750.79. The Dow Jones Industrial Average gained 0.92%, closing at $41,964.63. Nine of the 11 broad sectors of the benchmark index closed in the green.
Corporate Actions and Earnings: NVIDIA Corporation saw its stock price fall by 3.4%. The company currently carries a Zacks Rank #2 (Buy). The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), and the Communication Services Select Sector SPDR (XLI) fell 1.8%, 1.5%, and 1.4%, respectively.
Trending Industry Update: The National Association of Home Builders attributes increasing construction costs to tariffs that raise the cost of building a home by $9,200. Persistent labor shortages due to an immigration crackdown are also limiting home building.
United States: The Federal Reserve held interest rates steady at 4.25%-4.5%, indicating that reductions are likely later in the year. Capacity Utilization for February came in at 78.2%, up from 77.7% in January. Industrial Production for February increased by 0.7%, rebounding from a decrease of 0.3% in January.
Europe: European markets were influenced by geopolitical developments, including Putin’s agreement to a partial cease-fire in Ukraine. This decision is expected to impact energy infrastructure and market stability in the region.
Asia: The Bank of Japan kept rates on hold as expected, signaling cautious policy tightening due to global economic and tariff uncertainty. Rising food costs and strong wage growth could push up inflation in Japan.
Fixed Income and Interest Rates: The Federal Reserve announced a further scaling back of its “quantitative tightening” program, allowing just $5 billion in maturing proceeds from Treasurys to roll off each month, down from $25 billion. The central bank left a $35 billion cap on mortgage-backed securities unchanged.
Commodities: Gold held steady at around $3,000 an ounce as investors reacted to the Fed’s decision. U.S. natural gas prices gained due to a shift in weather outlook.
Energy: Chevron CEO lobbied for more time to wind down operations in Venezuela. This move is part of broader geopolitical developments affecting energy markets.
Metals: Precious metals, including gold, remained stable as the Federal Reserve left rates on hold.
Currencies: The WSJ Dollar Index rose 0.1% to 99.00. This slight increase reflects investor sentiment following the Fed’s decision.
Economic Indicators: Import prices rose 0.4%, including Chinese imports, which increased by 0.5%. This rise in import prices contributes to inflationary pressures in the U.S. economy.
Geopolitical Developments: Putin agreed to a partial cease-fire in Ukraine, pausing attacks on energy infrastructure. This development is expected to have significant implications for global energy markets and geopolitical stability.
New Technology News: SoftBank announced its acquisition of Ampere Computing for $6.5 billion. This deal highlights ongoing investments in technology and computing infrastructure.
This report provides a detailed overview of the latest macroeconomic news and market movements for March 19, 2025. Stay tuned for more updates and insights from BoykoWealth.com.