Midday Market Roundup for Monday, March 24, 2025

U.S. Stocks Surge on Tariff Exemption Hopes

U.S. stock futures have surged significantly today, propelled by reports that President Trump's upcoming tariffs may be less extensive than initially feared. The S&P 500 and Nasdaq Composite are up by 1.5% and 1.8%, respectively, while the Dow Jones Industrial Average has gained 1.2%. This surge, driven by the possibility of specific sectors being excluded from the tariffs, could have a significant impact on the market. Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, stressed the importance of clear tariff policies in reversing the recent stock market downturn.

Global Economic Growth to Slow in 2025

The Organization for Economic Cooperation and Development (OECD) has revised its global growth forecast downward to 3.1% in 2025 and 3.0% in 2026, citing escalating trade tensions, geopolitical uncertainties, and lingering inflation. However, Mathias Cormann, OECD Secretary-General, emphasized that despite these challenges, the global economy has shown resilience. The OECD also lowered its growth forecast for the U.S. economy to 2.2% in 2025 and 1.6% in 2026, down from previous projections of 2.4% and 2.1%, respectively.

U.S. Business Activity Rises Amid Sentiment Deterioration

U.S. business activity has seen an uptick in March despite growing concerns over import tariffs and government spending cuts. The S&P Global survey revealed that input prices have surged to a near two-year high, while employment growth remains sluggish. Williamson, Business Economist at S&P Market Intelligence, highlighted that business sentiment regarding future conditions has dimmed due to policy uncertainties. This rise in business activity, despite the challenges, could potentially contribute to the global economic growth, albeit at a slower pace.

China Maintains 5% Growth Target for 2025

China has announced a growth target of 5% for 2025, unchanged from 2024, despite ongoing trade tensions with the U.S. This decision reflects China's efforts to stabilize its economy amidst global headwinds. The World Economic Forum noted that China's growth target is supported by increased government spending, with a projected deficit rise from 3% in 2024 to 4% in 2025.

In summary, today's financial landscape is marked by cautious optimism amidst ongoing economic uncertainty. As we move forward, monitoring these developments closely for their potential impact on global markets will be crucial.

Sources:

• Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, on tariff policy impacts.
• Mathias Cormann, OECD Secretary-General, on global economic forecasts.
• Williamson, Business Economist at S&P Market Intelligence, on U.S. business trends.
• World Economic Forum, on China's economic growth targets.

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Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the opinions of any organization or individual mentioned. The Information provided is subject to change and may not reflect the current market situation.

Individual HTTP URLs for Stories:

1. Michael Kantrowitz on U.S. Stocks
2. https://finance.yahoo.com/news/live/stock-market-today-tech-leads-stock-rebound-with-inflation-data-tariffs-in-focus-231741702.html
3. Mathias Cormann on OECD Forecasts
4. https://www.staffingindustry.com/news/global-daily-news/global-economic-growth-to-slow-in-2025-oecd
5. Williamson on U.S. Business Trends
6. https://www.reuters.com/markets/us/us-business-activity-rises-march-sentiment-deteriorates-further-2025-03-24/
7. World Economic Forum on China's Growth
8. https://www.weforum.org/stories/2025/03/consumers-take-fright-at-us-policy-trajectory-and-other-key-economic-news-to-know/

Revised Version with Named Sources in URLs:

1. Michael Kantrowitz on U.S. Stocks
2. https://finance.yahoo.com/news/live/stock-market-today-tech-leads-stock-rebound-with-inflation-data-tariffs-in-focus-231741702.html
3. Mathias Cormann on OECD Forecasts
4. https://www.staffingindustry.com/news/global-daily-news/global-economic-growth-to-slow-in-2025-oecd
5. Williamson on U.S. Business Trends
6. https://www.reuters.com/markets/us/us-business-activity-rises-march-sentiment-deteriorates-further-2025-03-24/
7. World Economic Forum on China's Growth
8. https://www.weforum.org/stories/2025/03/consumers-take-fright-at-us-policy-trajectory-and-other-key-economic-news-to-know/

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