The stock market closed a challenging week with gains. The S&P 500 rose by 0.6%, the Dow Jones Industrial Average increased by 0.5%, and the Nasdaq Composite climbed 0.7%.

Investors showed buying interest, reflecting a buy-the-dip strategy following sharp declines earlier in the week. Technical factors also played a role as the S&P 500 fell below its 200-day moving average of 5,733.

The semiconductor sector significantly boosted the broader equity market. Broadcom (AVGO, Financial) surged 8.6% to $194.96 after reporting strong results and guidance, contributing to a 3.2% gain in the PHLX Semiconductor Index (SOX).

The February Employment Situation report showed nonfarm payroll growth at 151,000, slightly below the consensus of 159,000. The U6 unemployment rate rose sharply to 8.0% from 7.5%, the highest since late 2021. Despite this, buyers remained undeterred.

Fed Chairman Powell's comments during a Q&A session highlighted pleasant surprises in productivity improvements, suggesting higher potential output. He reiterated that there is no urgency to adjust policy at this time.

President Trump mentioned that reciprocal tariffs, initially set to take effect on April 2, could be implemented today.

• Dow Jones Industrial Average: -2.4% YTD
• S&P 500: -3.1% YTD
• S&P Midcap 400: -3.5% YTD
• Nasdaq Composite: -3.5% YTD
• Russell 2000: -4.1% YTD

Today's economic data review:

• February Nonfarm Payrolls: 151K (consensus 159K); prior revised to 125K from 143K.
• February Nonfarm Private Payrolls: 140K (consensus 145K); prior revised to 80K from 111K.
• February Avg. Hourly Earnings: 0.3% (consensus 0.3%); prior revised to 0.4% from 0.5%.
• February Unemployment Rate: 4.1% (consensus 4.0%); prior 4.0%.
• February Average Workweek: 34.1 (consensus 34.2); prior 34.1.

The key takeaway from the report is that it was just satisfactory, insufficient to alleviate growth concerns highlighted by recent data releases.

No significant US economic data is expected on Monday.

Guru Stock Picks

David Nierenberg has made the following transactions:

• Add in RVSB by 21.42%

Today's News

President Donald Trump has initiated a Strategic Bitcoin Reserve as part of his broader ambition to establish the United States as the leading global power in cryptocurrency. During the White House's first crypto-focused summit, Trump emphasized his goal to make the U.S. a "bitcoin superpower." This move comes with the backdrop of ongoing volatility in the crypto market, including Bitcoin (BTC-USD) and Ethereum (ETH-USD). The announcement has stirred mixed reactions among investors, with Bitcoin's price experiencing fluctuations throughout the week.

In trade news, President Trump has threatened to impose reciprocal tariffs on Canadian dairy and lumber products. The President highlighted the high tariffs on U.S. exports to Canada as a reason for potential retaliatory measures. This development adds another layer of complexity to the already tense trade relations between the U.S. and Canada, particularly affecting the softwood lumber industry.

In the technology sector, Nvidia (NVDA, Financial) has seen a significant decrease in its market cap, falling out of the $3 trillion club. The decline is attributed to investor concerns over U.S.-China tech tensions and competition from Chinese AI startups like DeepSeek. This has resulted in a 20% drop in Nvidia's stock since the beginning of the year, further impacted by President Trump's tariff policies.

Elon Musk's AI startup, xAI, is expanding its operations with the acquisition of a one-million-square-foot property in Memphis, Tennessee. xAI, known for its Grok chatbot, plans to use the facility to house 100,000 Nvidia H100 GPUs. This expansion underscores xAI's commitment to maintaining its position at the forefront of AI innovation.

In the semiconductor industry, U.S. companies are urging the Trade Commission to collaborate with global allies to counter China's dominance. The U.S. International Trade Commission is set to hold a public hearing to address China's policies in the semiconductor sector. Companies like Wolfspeed (WOLF, Financial) and ACM Research (ACMR, Financial) are expected to participate, highlighting the challenges posed by China's market practices.

Walgreens (WBA, Financial) is facing challenges as it agrees to a $10 billion take-private deal with Sycamore Partners. This move leaves CVS Health (CVS, Financial) as the only publicly traded pharmacy chain in the U.S. The deal marks a significant shift for Walgreens, which has struggled with debt and declining profits in recent years.

ZIM Integrated Shipping (ZIM, Financial) saw a notable stock increase following reports that CEO Eli Glickman is considering a management-led buyout. Despite potential regulatory hurdles in Israel, the shipping firm remains an attractive target due to its strong cash position and history of substantial dividends.

Oracle (ORCL, Financial) is anticipated to report an 8% rise in third-quarter revenue, with attention focused on the Stargate Project involving collaboration with Nvidia and OpenAI. Analysts expect updates on the project's financial impact, which could serve as a catalyst for Oracle's stock.

Anysphere, a startup known for its AI-powered coding editor Cursor, is nearing a $10 billion valuation with its latest funding round. Supported by investors like Thrive Capital and Andreessen Horowitz, Anysphere aims to revolutionize programming by integrating AI with human capabilities.

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