New York, NY – March 7, 2025 – Major U.S. stock indexes closed higher on Friday, March 7, 2025, staging a notable rebound from earlier session declines. The late-day surge was primarily attributed to comments from Federal Reserve Chair Jerome Powell, who offered an optimistic assessment of the economy’s health and signaled the central bank was not facing immediate pressure to alter interest rates.
Despite the positive finish to the trading week, it was insufficient to reverse a persistent downward trend that has gripped markets recently. Both the benchmark S&P 500 and the technology-heavy Nasdaq Composite indexes recorded their third consecutive week of losses, underscoring lingering investor caution.
Weekly Market Performance
The S&P 500 experienced a significant downturn over the past five trading days, shedding 3.1% for the week. This marked its largest weekly percentage drop since September 2024, highlighting the recent volatility. Over the past three weeks combined, the broad index has contracted by a notable 5.6%.
The Nasdaq Composite fared slightly worse this week, falling 3.5%. Its three-week losing streak has resulted in a more substantial cumulative decline of 9.1%.
The Dow Jones Industrial Average, while also posting a loss, showed slightly more resilience than its counterparts, finishing the week down 2.4%.
Year-to-date figures, calculated as of the start of Friday’s trading session, reflected the challenging start to 2025 for growth-oriented sectors. The Dow was marginally positive, up 0.1%. In contrast, the S&P 500 was down 2.4%, and the Nasdaq Composite had fallen 6.4% since the beginning of the year.
Economic Data and Investor Sentiment
Federal Reserve Chair Powell’s remarks provided a dose of optimism, suggesting stability in the economic outlook. However, market sentiment throughout the week remained heavily influenced by broader concerns. Fears surrounding the potential implementation of widespread tariffs loomed large, raising anxieties that such measures could trigger inflationary pressures and potentially slow economic growth.
Economic data released on Friday morning presented a mixed picture. The February jobs report indicated that U.S. employers added slightly fewer jobs than anticipated during the month. Concurrently, the national unemployment rate inched upward to 4.1%, a modest increase that offered a counterpoint to some of the stronger economic indicators seen recently.
Company Highlights: Broadcom and CoreWeave
Amidst the broader market movements, specific company news drove notable share price action. Shares of semiconductor and infrastructure software giant Broadcom (AVGO) surged following its fiscal first-quarter earnings report and forward-looking guidance.
Broadcom’s performance for Q1 FY2025 significantly exceeded analyst expectations. The company reported adjusted earnings per share of $1.60 on revenue of $14.92 billion. This revenue figure represented a robust 25% increase compared to the same period last year, signaling strong business momentum.
The earnings release highlighted particularly strong demand for artificial intelligence (AI) semiconductors as a key growth driver. Broadcom’s AI revenue specifically jumped a remarkable 77% year-over-year, reaching $4.1 billion in the quarter. The company’s projection for the second quarter anticipated continued strength in AI-related business, guiding for total revenue around $14.9 billion.
In other notable company news, CoreWeave, a specialized cloud computing provider, is reportedly preparing for a potential initial public offering (IPO). The company, which is backed by Nvidia (NVDA) and focuses on providing data centers equipped with high-performance Nvidia chips essential for AI model development, is expected to go public as early as next week.
Reports regarding CoreWeave’s potential IPO structure presented varying targets. One set of reports indicated the company aimed to raise $4 billion, which could imply a valuation around $35 billion. However, other reports suggested a smaller capital raise of $1.5 billion, associated with significantly lower valuation estimates ranging from $23 billion down to $19 billion. These differing figures underscore the dynamic nature of pre-IPO market assessments.
CoreWeave’s 2024 financial results, as reported, showed a net loss of $863 million on revenue totaling $1.9 billion. The company’s client concentration was also highlighted, with tech giant Microsoft (MSFT) accounting for a significant 62% of CoreWeave’s revenue last year.
Conclusion
Friday’s market action painted a complex picture: a day of recovery spurred by reassuring words from the Federal Reserve Chair, set against the backdrop of a challenging week marked by persistent declines for major indexes. As investors processed mixed economic data and weighed the potential impact of trade policies, attention also turned to company-specific performance, particularly within the booming AI sector, offering pockets of significant growth like that seen with Broadcom and the anticipated public debut of CoreWeave.
