Us Stocks End Losing Streak Despite Unpredictability on "Quadruple Witching" Day

On Friday, the US trading session was characterized by volatility as major indexes rebounded from their lows following President Trump's comments, which suggested flexibility on tariffs while reaffirming reciprocal measures by the 2 April deadline. The S&P 500 experienced a slight increase on Friday, marking the end of a four-week decline driven by uncertainty over trade policies, recession fears, and a decline in major technology shares. The index rose by 0.08% to close at 5,667.56, entering positive territory as the trading day concluded. The Nasdaq Composite saw a more significant gain, increasing by 0.52% to settle at 17,784.05, while the Dow Jones Industrial Average advanced by 0.08% to close at 41,985.35. The Federal Reserve left interest rates unchanged while maintaining its forecast for two rate cuts later in the year, despite raising inflation projections and lowering its economic growth outlook.

In South Africa, markets were closed on Friday in observance of Human Rights Day. However, on Thursday, the South African Reserve Bank paused its rate-cutting cycle, as the impact of US President Donald Trump's trade policies and the ongoing deadlock over the national budget overshadowed the country’s success in keeping inflation low. The decision to maintain the repo rate at 7.50%, in line with the median forecast of economists surveyed by Reuters, followed three consecutive rate cuts at the bank's previous monetary policy meetings. The Rand had a mixed performance on Thursday, 20 March, and closed at approximately R18.15 against the dollar at the end of the trading day.

In the Eurozone, both the STOXX 50 and STOXX 600 indices declined on Friday, falling by 0.50% and 0.30%, respectively, as ongoing concerns about the economic outlook continued to dampen investor sentiment. The impending imposition of reciprocal tariffs by the US, coupled with the EU's delayed countermeasures until mid-April, contributed to the downturn.

In the UK, the FTSE 100 index fell by more than 0.50% on Friday, largely due to disruptions in the travel sector and disappointing public finance data. IAG (LON:ICAG), the parent company of British Airways, saw its shares drop by close to 3.80% following the closure of Heathrow Airport due to the electrical fire, while EasyJet (LON:EZJ) experienced a decline of around 2.60%. The UK's public borrowing figures for February added to the pressure, reaching £10.7 billion—substantially above the forecast of £7 billion—and marking the fourth-highest February deficit since records began in 1993.

In Asia, the Japanese Nikkei 225 Index slipped by 0.20% to close at 37 677, while the broader Topix Index edged up by 0.29% to 2 804 in mixed trading as Japanese markets reopened after a mid-week holiday and responded to global developments. Meanwhile, in China, the Shanghai Composite fell 1.29% to close at 3 365 and the Shenzhen Component dropped by 1.76% to 10 687, marking the third consecutive day of losses as investors engaged in profit-taking. Earlier this week, Beijing unveiled a special action plan to boost consumer spending, though it provided few details, and the People's Bank of China kept key lending rates unchanged, offering little new momentum for a market rally.

In commodities, WTI crude futures traded around $68 per barrel on Friday, heading for their best week since early January 2025 as new US sanctions on Iran and OPEC+ output cuts raised concerns over supply. Meanwhile, gold traded around $3 030 per ounce, remaining near record highs and set for a third consecutive weekly gain, driven by dovish signals from the Federal Reserve and continued demand for safe-haven assets.

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