March 7, 2025 – Boyko Wealth

Boyko Research

BoykoWealth.com — Automated Daily Report on World Macroeconomic News for March 7, 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 U.S. economy grew by 2.8% in 2024, nearly matching the 2.9% growth achieved in 2023[1]. This growth was primarily driven by consumer spending, which accounts for nearly 70% of the GDP. Despite the solid growth, concerns about a potential slowdown in 2025 are emerging due to rising inflation and trade tensions.

Inflation: Inflation is expected to rise in 2025, with economists from Morgan Stanley projecting a 2.5% increase, up from their previous forecast of 2.3%[2]. Core PCE inflation, which excludes food and energy costs, is anticipated to reach 2.7%, up from 2.5%. The ongoing trade tensions and tariffs imposed by the Trump administration are significant contributors to the expected rise in inflation.

Unemployment: The U.S. unemployment rate ticked up to 4.1% in February 2025, reflecting concerns about a potential economic slowdown[3]. Despite the addition of 151,000 jobs, the increase in the unemployment rate underscores the uncertainty in the labor market.

Consumer Confidence: Consumer confidence has seen a significant decline, with the Conference Board’s Consumer Confidence Index recording its steepest drop of 6.7% in over three years[4]. This decline is attributed to mounting policy uncertainties and rising prices, which have strained household budgets and weakened retail performance.

Equity Markets: U.S. equity markets experienced volatility, with the Dow Jones Industrial Average rising by 0.5%, the S&P 500 advancing by a similar margin, and the Nasdaq Composite gaining 0.7%[5]. Despite these gains, the S&P 500 posted its worst weekly performance since September, reflecting the turmoil caused by President Trump’s volatile trade policies.

Corporate Actions and Earnings: Several companies reported notable earnings on March 7, 2025. GMS Inc. saw its shares plunge 7.5% after reporting third-quarter fiscal 2025 earnings of 92 cents per share, missing estimates[6]. Amazon.com, Inc. shares fell 3.7%, while BJ’s Wholesale Club Holdings, Inc. shares soared 12.2% after beating earnings expectations[7].

Trending Industry Update: The logistics and supply chain industry is adapting to new challenges, with truck volumes projected to grow by 1.6% in 2025[8]. The industry is also seeing advancements in AI-driven decision-making, real-time shipment tracking, and automation, enhancing efficiency and responsiveness across supply chains.

United States: The U.S. economy continues to navigate a complex landscape marked by ongoing trade tensions and significant economic data releases[5]. The Federal Reserve remains cautious about lowering interest rates, citing policy uncertainties that impact markets and obscure the economic outlook.

Europe: European markets are also experiencing volatility, with Germany’s surprise spending plans driving a selloff in the benchmark German Bund[9]. The uncertainty surrounding trade policies and economic growth is affecting investor sentiment across the region.

Asia: Asian markets faced declines, with stocks in Australia and Japan falling more than 1%[5]. The downturn was primarily due to a decrease in risk appetite and a rally in the yen, which made Asian exports less competitive in the global market.

Fixed Income and Interest Rates: The yield on the 10-year U.S. Treasury note ended at 4.32%, while the 2-year note ended at 3.99% and the 30-year note at 4.62%[10]. The inverted yield curve, where longer-term yields are lower than shorter-term ones, continues to signal potential recession risks.

Commodities: Wheat futures dropped 7 1/4¢ to $5.46 3/4 a bushel, while corn futures remained unchanged at $4.64 a bushel[11]. Soybeans for May delivery fell 1/4¢ to $10.27 a bushel. The commodity markets are influenced by favorable weather conditions and ongoing trade tensions.

Energy: Tesla plans to build a battery storage megafactory near Houston, Texas, as part of its efforts to expand its utility-scale battery energy storage systems[12]. This facility will create 1,500 advanced manufacturing jobs and contribute to the company’s renewable energy initiatives.

Metals: Gold prices closed at $2,917.40, down $9.20[13]. The decline in gold prices reflects the broader market volatility and investor concerns about economic growth and inflation.

Currencies: The U.S. dollar experienced fluctuations due to ongoing trade tensions and economic data releases. The currency markets remain sensitive to policy changes and geopolitical developments.

Economic Indicators: Key economic indicators, including GDP growth, inflation, and unemployment rates, continue to shape market sentiment and influence policy decisions. The interplay between these indicators and trade policies remains a critical factor in the global economic outlook.

Geopolitical Developments: Trade tensions between the U.S. and its major trading partners, including Canada, Mexico, and China, continue to create uncertainty in global markets[11]. The Trump administration’s tariff policies and reciprocal tariffs from other countries are significant contributors to market volatility.

New Technology News: The logistics industry is seeing a rise in driverless freight trucks, with Volvo Autonomous Solutions and DHL Supply Chain launching operations between Dallas and Houston[8]. This initiative aims to advance autonomous technology and ensure operational safety.

This comprehensive summary provides an overview of the latest macroeconomic news and developments, highlighting key trends and data points that influence global markets. Stay informed with BoykoWealth.com for daily updates on world macroeconomic news.

References

[1] Economic Outlook – March 2025

[2] Some economists think U.S. inflation is likely to rise in 2025

[3] March 7, 2025 – PBS News Hour full episode

[4] Markets face headwinds as consumer confidence wanes | Opinion

[5] The Pulse: Global Economic and Market News for Friday, March 7, 2025

[6] Company News for Mar 7, 2025 – Nasdaq

[7] Company News for Mar 7, 2025 – Yahoo Finance

[8] JTR Logistics Weekly Transportation & Supply Chain Insights Week of …

[9] Rocky US Stock Market Faces Inflation Data Test – U.S. News

[10] Treasury Yields Snapshot: March 7, 2025 – Advisor Perspectives

[11] 3 Big Things Today, March 7, 2025 – Successful Farming