S&P, Nasdaq Post Worst Quarter Since 2022

Summary

WSJ What’s News: S&P, Nasdaq Post Worst Quarter Since 2022
Release Date: March 31, 2025
Host: Alex Osala, The Wall Street Journal

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Market Overview: A Turbulent Quarter Comes to an End

The episode begins with Alex Osala providing an overview of the U.S. stock market's performance, highlighting a turbulent first quarter ending with the S&P 500 and Nasdaq recording their worst quarterly losses since 2022. Despite a shaky start due to tariff concerns, the markets saw a partial recovery by the end of the day.

Key Highlights:

• Market Fluctuations: "US Stocks were mixed today ahead of an eventful week for markets. President Trump is set to announce his next round of tariffs on Wednesday and the latest jobs report is expected for Friday," Osala explains (00:58).
• Index Performance: The S&P 500 ended up approximately 0.6% higher, the Nasdaq slightly declined by 0.1%, and the Dow Jones Industrial Average rose by 1% (00:58).

Impact of Tariffs on Manufacturing and Market Sentiment

Hannah Aaron Lange and Bob Tita delve into the implications of President Trump's tariff policies on manufacturing and the broader market sentiment.

Manufacturing Challenges:

• Rising Costs: "Screws are a staple of manufacturing and tariffs just made them a whole lot more expensive," Lange notes (00:46).
• Industry Exposure: "Pretty much all manufacturers have some exposure to this, certainly machinery, farm equipment, construction equipment, automotive heavy duty equipment as well," she adds (00:46).

Market Reactions:

• Market Volatility: Tita compares the current trading day to previous ones in 2025, emphasizing the market's sensitivity to Trump’s tariff announcements (02:01).
• Investor Sentiment: "Investors are coming around to the fact that it might not be worst case scenario on either of those fronts," Tita observes (02:01).
• Quarterly Performance: "Markets are ending the first quarter of 2025 in an extremely different place than they did the fourth quarter of 2024," Tita explains, highlighting a shift from tech leaders to more stable, less risky assets (03:06).

President Trump’s Potential Third Term Ambition

Alex Osala reports on President Trump’s comments regarding a possible third term, which would contravene the 22nd Amendment of the U.S. Constitution.

Trump’s Remarks:

• Ambiguity on Candidacy: "I don't want to talk about a third term now because no matter how you look at it, you got a long time to go," Trump states aboard Air Force One (04:42).
• Constitutional Barrier: Osala underscores that the 22nd Amendment prohibits any president from serving more than two terms (05:03).

Expert Insights:

• Legal Perspectives: In an NBC interview, Trump hinted at methods to circumvent constitutional limitations, stating he was "not joking about the possibility" (05:03).

European Political Shake-Up: Marine Le Pen’s Conviction

The podcast covers the recent conviction of Marine Le Pen, a prominent far-right leader in France, and its repercussions.

Conviction Details:

• Misuse of Funds: A French court convicted Le Pen of misusing nearly $5 million in European Union funds, resulting in a four-year prison sentence, half suspended, and a five-year ban from seeking public office (05:03).
• Political Impact: "The court's ruling triggered a political earthquake in France and beyond," Osala reports (05:03).

Le Pen’s Response:

• Appeal Plans: Le Pen expressed her intention to appeal the decision, stating she was "scandalized by the judge's decision" (05:03).

International Reactions:

• U.S. Concerns: A State Department spokeswoman highlighted worries about political exclusions, drawing parallels to legal challenges faced by Trump in the U.S. (05:03).

Tariffs on Steel and Aluminum: The Screws Dilemma

The discussion returns to the impact of Trump's tariffs, focusing on the unexpected consequences for the screws manufacturing industry.

Tariff Expansion:

• Broader Scope: "This latest tariff expanded the tariff for aluminum and raised it and also extended it to hundreds and hundreds of what the administration is calling derivative products," Lange explains (07:28).

Industry Response:

• Cost Assessment: Manufacturers are evaluating their costs and exploring domestic suppliers, though availability is limited (07:57).
• Supply Chain Scramble: The rising cost of screws is disrupting supply chains across various sectors, from automotive to construction (07:57).

Evolving Investment Landscape: Access to Private Companies

Imani Moiz discusses the democratization of investing in private companies, previously accessible only to institutional investors or the ultra-wealthy.

Increased Accessibility:

• Lower Investment Thresholds: New marketplaces are reducing minimum investments from tens of thousands of dollars to as low as $5,000 (08:35).
• Fintech Innovations: Fintech companies are facilitating greater access to investments in firms like OpenAI, Epic Games, and Fanatics (09:03).

Investor Appeal:

• Familiar Private Firms: "There's a lot more interest in private market securities these days because companies are staying private for longer," Moiz notes (09:03).

Shifts in American Snack Consumption

David Wainer examines the declining trend in snack consumption within the $180 billion snack industry, exploring potential causes and corporate responses.

Consumption Trends:

• Reduced Snacking: Americans are snacking less, leading to significant impacts on companies reliant on snack sales (09:56).

Company Strategies:

• Promotional Efforts: Companies are increasing discounts and advertising to stimulate sales (10:18).
• Acquisitions: Major firms like Pepsi are acquiring growth-oriented snack companies, such as Sieta Foods, to diversify their product lines (10:26).
• Healthier Alternatives: Growth is seen in healthier snack categories like Greek yogurt, protein bars, and meat snacks, while traditional snacks like popcorn and chocolate are declining (10:26).

Regulatory Concerns:

• Health Regulations: With the new administration's focus on eliminating artificial additives, companies worry about changing consumer perceptions and stricter regulations impacting their products (11:24).

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Conclusion

The episode of WSJ What’s News provides a comprehensive analysis of the current economic landscape, touching on volatile stock markets influenced by tariff policies, political maneuvers both in the U.S. and Europe, evolving investment opportunities, and shifting consumer behaviors in the snack industry. Notable insights include the resilience of less risky assets amidst market uncertainty, the potential constitutional challenges posed by President Trump’s ambitions, and strategic adaptations by companies facing both market and regulatory pressures.

Notable Quotes:

• Bob Tita: "Investors are coming around to the fact that it might not be worst case scenario on either of those fronts." (02:01)
• Marine Le Pen: "I was scandalized by the judge's decision and planned to file an appeal." (05:03)
• David Wainer: "Maybe some Americans at the margin are moving towards healthier snacks, and that could be a problem for some of these food companies." (10:26)

For listeners seeking in-depth coverage of the latest market movements and their implications, this episode of WSJ What’s News serves as an essential briefing.

Transcript

[Alex Osala]

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[Imani Moiz]

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[Alex Osala]

Visit Venmo Me Debit to learn more. The Venmo MasterCard is issued by the Bancorp Bank N.A. pursuant to license by MasterCard International Incorporated. Terms apply DOSH cashback terms apply A turbulent quarter for US Markets ends with a turbulent day as stocks recover after sliding on tariff concerns. Plus, screws are a staple of manufacturing and tariffs just made them a whole lot more expensive.

[Hannah Aaron Lange]

Pretty much all manufacturers have some exposure to this, certainly machinery, farm equipment, construction equipment, automotive heavy duty equipment as well.

[Alex Osala]

As the and President Trump says he's considering running for a third term. It's Monday, March 31st. I'm Alex Osala for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. US Stocks were mixed today ahead of an eventful week for markets. President Trump is set to announce his next round of tariffs on Wednesday and the latest jobs report is expected for Friday. Major US Indexes bounced back after starting the day sharply lower. The S&P 500 ended the day about 0.6% higher and the Nasdaq fell about 0.1%. Both indexes recorded their biggest quarterly losses since 2022. The Dow was up 1%. Hannah Aaron Lange covers markets for the Wall Street Journal. Hannah, US Markets opened significantly lower today, but then they rallied this afternoon. What caused them to dip and then what bro?

[Bob Tita]

Today was a trading day that felt very similar to other days we've seen in the market so far in 2025, where whenever President Trump speaks about tariffs or there's some kind of significant report on the details of the tariff policy coming out of his administration. It sends big ripples through the market and we saw global stock markets end lower in Europe and Asia and we saw pretty sharp decline in in US Stocks when the market opened. And as you mentioned, stocks seemed to recover from those losses quite significantly. So my sense of what happened is that over the weekend investors got some more mixed signals on the tariff front. This seemed to spook investors, at least initially, but as they processed the news, maybe we eventually got back to this place of these big events that we have coming up in the market this week. Trump's self imposed tariff deadline as well as the jobs report on Friday. Investors are coming around to the fact that it might not be worst case scenario on either of those fronts.

[Alex Osala]

And of course, we're at the end of March. So how are markets ending this turbulent first quarter?

[Bob Tita]

Markets are ending the first quarter of 2025 in an extremely different place than they did the fourth quarter of 2024, especially when it comes to the kind of stars or leaders of the stock market. If you think about those names that were really on top in November, December during that post election rally, Nvidia Tesla, the Max 7. Right. All these big tech stocks that fueled a lot of gains in 20 and 2024 and spurred this broader risk on attitude among investors. Those stocks have been some of the laggards. And then less risky assets have also attracted more interest from investors. So things like bonds, but even stocks in the consumer staples sector or dividend stocks we've reported on have outperformed the market because of the uncertainty around tariffs in the economy. That is fueling a lot of anxiety among investors right now.

[Alex Osala]

That was WSJ reporter Hannah Aaron Lang as the US Prepares to unleash new levies on a range of trade partners and they in turn look to respond with their own tariffs. What's news will be speaking to a top EU lawmaker in charge of trade, the economist inspiring much of Trump's trade policy, and a former treasury official who can explain why Trump's 25% car tariffs won't tip China from the top auto spot. That's in the morning edition of what's News this week. Starting tomorrow, President Trump is leaving open the possibility of running for a third term, a move that's prohibited by the US Constitution. Speaking to reporters aboard Air Force One yesterday, Trump said people had been asking him about it, even though he says he's not focused on it at the moment.

[Donald Trump]

I don't want to talk about a third term now because no matter how you look at it, you got a long time to go. We have a long time. You know, we have almost four years to go and that's a long time. But to despite that, so many people are saying you've got to run again. They love the job window. Most importantly, they love the job window.

[Alex Osala]

The 22nd Amendment of the Constitution bars presidents from serving more than two terms. It states no person shall be elected to the office of the president more than twice. In an interview with NBC yesterday, Trump said there are methods that would allow him to run for a third term and added that he was, quote, not joking about the possibility. A French court has convicted far right leader Marine Le Pen of misusing almost $5 million in European Union funds, banning her from the next presidential election, where she was expected to be a frontrunner. As part of her sentence, Le Pen received a four year prison term, half of which was suspended, and she was barred from seeking public office for the next five years. That rules her out of the 2027 presidential race unless she can win a swift appeal. In a TV interview today, Le Pen said that she was scandalized by the judge's decision and planned to file an appeal. The court's ruling triggered a political earthquake in France and beyond. A State Department spokeswoman said, quote, the exclusion of people from the political process is particularly concerning given the aggressive and corrupt lawfare waged against President Trump here in the United States. Coming up, now that tariffs against steel and aluminum are in place, one little product is having a big impact across industries. That's after the break.

[David Wainer]

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[Alex Osala]

President Trump's recently implemented tariffs on steel and aluminum imports have scrambled supply chains affecting everything from car parts to lawnmowers. One import really feeling the impact screws. And the rising costs for screws are rippling through the manufacturing supply chains. Bob Chida, who covers manufacturing and metals for the Journal, is here now with more. So, Bob, in 2018, President Trump put a similar tariff into place on steel and aluminum. Why is this one different?

[Hannah Aaron Lange]

This one is an expansion of the 2018 tariffs on steel and aluminum. This latest tariff expanded the tariff for aluminum and raised it and also extended it to hundreds and hundreds of what the administration is calling derivative products. So finished goods that are made of steel and aluminum and screws, nuts, bolts, fasteners in general are included in that.

[Alex Osala]

Okay, so what is the industry doing about this then?

[Hannah Aaron Lange]

Well, right now they're all trying to assess their own costs, their own exposure to all this, figuring out if there are domestic suppliers that can provide some of this. Some of the people we talked to in the story said the domestic producers, there's just not enough of them. And so there's a real concern about where they would get these fasteners domestically if just tariffs make them prohibitively expensive.

[Alex Osala]

That was WSJ reporter Bob Tita Thanks Bob.

[Hannah Aaron Lange]

Thank you.

[Alex Osala]

It's getting easier to invest in high risk, high reward private companies. Until recently, investing in private companies was the domain of institutional investors or the very, very rich. Now, though, as we're exclusively reporting two new marketplaces are lowering the minimum investment required from tens of thousands of dollars to $5,000. Personal economics reporter Imani Moiz told our your Money Briefing podcast what makes private companies interesting to individual investors?

[Imani Moiz]

There's a lot more interest in private market securities these days because companies are staying private for longer. Think about top names like OpenAI, Epic Games or Sports gear company Fanatics. These are companies that people are familiar with, but there's not really an way to buy in. But what we're seeing now is that there's a whole bunch of fintech companies that are working to make them more accessible.

[Alex Osala]

You can hear more from the conversation with Imani on today's yous Money Briefing podcast. Something strange is happening to the American diet. People just aren't snacking like they used to. It's not clear yet whether this shift is permanent, but for the $180 billion snack industry, fewer snacks is more than just peanuts. It's putting a real dent in the company's bottom line. WSJ Heard on the street columnist David Wainer is here to tell us more. David, what's behind this slowdown in snack foods? What do companies make of this?

[David Wainer]

So the companies are, for now, really talking about the pressured consumer. For the last few years, America went through this massive period of inflation. Companies were able to pass a lot of those price increases to the consumer. And so many consumers are trading down to smaller snacks or to private labels. And that's really what they're pointing their finger at.

[Alex Osala]

Okay, so less money to go around, less money to spend on a little impulse snack purchase. What are companies doing about this?

[David Wainer]

So the companies are going to be using promotional tools like discounting and spending more on advertising. At the same time. You know, a lot of companies are hedging their bets and purchasing companies that focus on snacks that are enjoying better growth. Like, for example, Pepsi did a 1.2 billion acquisition of Sieta Foods, which is known for like its grain free tortilla chips. Some analysts are talking about companies focused on yogurt or protein bars. So if you look at Greek yogurt, cottage cheese, nutrition shakes, meat snacks, all of these have actually been going up by 5, 10% in sales in 2024. And then if you look at some of the unhealthier snacks like say, Ready to eat. Popcorn, chocolate, fruit snacks, pretzels. Those are categories that are underperforming and going down. So this picture emerges that maybe, maybe some Americans at the margin are moving towards healthier snacks, and that could be a problem for some of these food companies.

[Alex Osala]

What kinds of broader concerns do these companies have, especially because there's a new administration in town that might be affecting some of their business?

[David Wainer]

That's true. They're definitely also watching what's happening in the Maha land, Make America healthy again. Recently appointed Health Secretary Robert F. Kennedy, Jr. Has been talking about removing artificial dyes from their foods and sort of blaming them for some of our health problems. When you talk to companies and analysts, they really don't see a problem in eliminating, like, food additives, coloring in foods from the food supply. The big threat to these companies is if that MAHA language really starts to change the way that many Americans perceive snacks and food in general.

[Alex Osala]

That was WSJ Heard on the street columnist David Wainer. Thank you, David.

[David Wainer]

It was a pleasure.

[Alex Osala]

And that's what's news for this Monday afternoon. Today's show is produced by Anthony Banci and Pierre Bienname with supervising producer Michael Kasmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.