Wall Street was downbeat last week, with the S&P 500 losing 3.1%, the Dow Jones shedding about 2.4% and the Nasdaq Composite retreating 3.5%.  The S&P 500 recorded its worst week since September 2024. SPDR S&P 500 ETF Trust SPY lost 3.4% in the week. The Nasdaq officially entered correction territory — defined as a 10% decline from recent highs.

Weak Jobs Report Adds to Concerns

Investors largely shrugged off a weaker-than-expected February jobs report, which briefly pushed Treasury yields lower. Nonfarm payrolls increased by 151,000 in February, falling short of economists' expectations of 170,000. The unemployment rate rose to 4.1%, adding to concerns about economic softening.

Tariff Uncertainty Weighs on Markets

The week’s market turmoil was driven by concerns over trade policy. President Donald Trump’s tariff announcements created uncertainty, though he later exempted goods from Canada and Mexico under the USMCA until April 2. This partially reversed the original plan, but markets still struggled with a lack of long-term clarity.

“The market does not like uncertainty,” said Glen Smith, CIO at GDS Wealth Management, as quoted on CNBC. He expects a recovery from the tariff-led selloff but has warned that investors should prepare for continued market choppiness until trade uncertainties are resolved.

Treasury Secretary’s Take on Economic Outlook

Treasury Secretary Scott Bessent acknowledged that the economy may be losing momentum but attributed it to a transition from the previous policies. He reassured investors that any tariff-related price increase would be a one-time adjustment rather than a trigger for lasting inflation.

Winning S&P 500 Stocks That Have Room to Run

Below we highlight a few winning stocks of the S&P 500 that gained in the worst week (since September) of the index. These stocks have a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy).

Erie Indemnity ERIE – Up 11.1% Last Week

The Zacks Rank #2 Erie Indemnity Company's principal business activity consists of management of the affairs for Erie Insurance Exchange. The company also participates in the property/casualty insurance business through its three wholly owned subsidiaries. The stock comes from a top-ranked Insurance – Brokerage industry (top 21%) and top-ranked Computer and Technology sector (top 38%).

Jack Henry & Associates JKHY – Up 6.8% Last Week

Monett, MO-based Jack Henry & Associates, Inc., popularly known as JHA, caters to community banks by offering technology solutions and payment processing services. The stock comes from a top-ranked Computers - IT Services industry (top 21%) and top-ranked Computer and Technology sector (top 38%).

Charter Communications CHTR – Up 6.7% Last Week

The Zacks Rank #2 Charter Communications is the second-largest cable operator in the United States and a leading broadband communications company providing video, Internet and voice services. As of Dec. 31, 2024, the company served approximately 30.1 million customers in 41 states through its Spectrum brand.

Gilead Sciences GILD – Up 6.7% Last Week

Zacks Rank #2 Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV). The company’s broad portfolio includes drugs for liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. The stock hails from a top-ranked Medical - Biomedical and Genetics industry (top 21%) and top-ranked Medical sector (top 38%).

American Water Work AWK – Up 3.1% Last Week

Zacks Rank #2 company provides essential water services to more than 14 million customers in 24 states. The stock comes from a top-ranked Utilities sector (top 38%).

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Charter Communications, Inc. (CHTR) : Free Stock Analysis Report

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Erie Indemnity Company (ERIE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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