US Stock Market Update: 5 Things to Know Before the Stock Market Opens Wednesday
In this article, we will take a closer look at the premarket movers, the current state of the US markets, and what's happening with individual stocks.
As the US stock market prepares to open on Wednesday, March 19 investors are bracing themselves for another day of volatility. The Federal Reserve’s interest rate decision, scheduled for later today, has been the focus of attention, with many expecting the central bank to hold interest rates steady. In this article, we will take a closer US stock market update: 5 things to know before the market opens, the current state of the US markets, and what’s happening with individual stocks.
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1. Streak Snapped
The US stock market’s two-day winning streak came to an end on Tuesday, as all three major averages resumed their sell-off in full force. The S&P 500 (SPX) shed 1.07%, putting the broad market index down 8.6% from its record close in February and back near correction territory. The Dow Jones Industrial Average (DJI) sank 260.32 points, or 0.62%, while the tech-heavy NASDAQ Composite (IXIC), which is still in a correction, dropped 1.71%. The sell-off was led by the tech sector, with Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Palantir (NASDAQ: PLTR) all falling sharply.
2. Nvidia Unveils New AI Chips
Nvidia (NASDAQ: NVDA) CEO Jensen Huang announced the company’s new AI chips on Tuesday, debuting the Blackwell Ultra chip family and its next-generation graphics processing unit (GPU) named Vera Rubin. Huang detailed the chipmaker’s latest products at Nvidia’s highly anticipated annual GTC conference, where the company also announced a strategic collaboration with General Motors (NYSE: GM). As part of the deal, the automaker will use Nvidia’s AI products in its next-generation vehicles, driver-assistance systems, and factories. Despite the positive news, Nvidia’s stock fell 3.4% on Tuesday, as investors seemed unimpressed by the company’s latest offerings.
3. Ceasefire Talks
President Donald Trump said he and Russian President Vladimir Putin agreed to an “immediate Ceasefire on all Energy and Infrastructure” in the war in Ukraine on Tuesday, following at least a 90-minute phone call between the two leaders. In its own readout of the call, the Kremlin said Putin agreed on Russia and Ukraine not attacking each other’s energy infrastructure for 30 days. Trump announced the narrow ceasefire in a post on Truth Social, writing “We will be working quickly to have a Complete Ceasefire and, ultimately, an END to this very horrible War between Russia and Ukraine.”
4. Google Agrees to Buy Wiz
Alphabet (NASDAQ: GOOGL) announced on Tuesday that it agreed to buy cloud security startup Wiz in an all-cash deal worth $32 billion. The deal, Google’s largest ever, is nearly $10 billion more than Google’s last acquisition offer that Wiz walked away from in July, when it said it would instead pursue an IPO. Antitrust concerns were part of the reason Wiz turned down the original offer, according to sources the new deal will be a “great litmus test and bellwether for M&A in 2025”, West Monroe’s Brad Haller said, as tech companies express hope that Trump’s return to the White House will open the door for larger acquisitions. Google’s stock was unchanged in premarket trading on Wednesday, after the company announced a $32 billion all-cash deal to buy cloud security startup Wiz.
5. Fed Expectations
With Federal Reserve officials expected to hold interest rates steady on Wednesday, investors will be watching what the central bank has to say on the economy and the future path for interest rates. “There’s no chance of a cut Wednesday, so all the other stuff becomes more important,” Dan North, senior economist at Allianz Trade North America, said. Amid uncertainty around President Trump’s fiscal and trade policies, Fed Chair Jerome Powell said in a speech earlier this month that the Fed does “not need to be in a hurry” and is “well positioned to wait for greater clarity.”
The US Markets
The US stock market has been on a roller-coaster ride in recent weeks, as traders navigate soft economic data and uncertainty around President Donald Trump’s tariff policy. The S&P 500 officially entered correction territory last week, and the Nasdaq is still in a correction, meaning it’s down more than 10% from its recent high. The Dow Jones Industrial Average has also been volatile, with the index shedding over 1,000 points in the past few weeks.
The current market environment is characterized by high levels of uncertainty, with investors struggling to predict the outcome of the trade war between the US and China. The Federal Reserve’s decision on interest rates, scheduled for later today, will be closely watched, as it will provide insight into the central bank’s assessment of the economy.
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Stocks Making the Biggest Moves
Nvidia
Nvidia’s (NASDAQ: NVDA) stock fell 3.4% on Tuesday, despite the company’s announcement of new AI chips and a strategic collaboration with General Motors.
Amazon
Amazon’s (NASDAQ: AMZN) stock was down 0.5% in premarket trading on Wednesday, as investors continue to worry about the impact of the trade war on the company’s business.
General Mills
Shares of General Mills (NYSE: GIS) lost more than 3% after General Mills lowered its full-year guidance and reported a top-line miss for the third quarter. The company now sees organic net sales falling between 1.5% to 2% in the full year, versus previous calls for flat sales to a 1% rise.
Gilead Sciences
Gilead Sciences (NASDAQ: GILD) slipped 2.7% after the Wall Street Journal reported that the Health and Human Services Department is weighing plans to significantly slash the federal government’s funding for domestic HIV prevention. The company sells medicines for HIV and AIDS, sold off on the news.
Tesla
Tesla’s (NASDAQ: TSLA) stock advanced almost 3% after receiving approval from the California Public Utilities Commission for a passenger transportation permit. The company has applied for the permit to offer ride-hailing services, which could eventually lead to it providing robotaxi services, according to a report from Bloomberg.
Goldman Sachs
Goldman Sachs’ (NYSE: GS) shares ticked nearly 1% lower on the heels of an Oppenheimer downgraded to perform from outperform. Oppenheimer cited the lack of a clear rebound in merger and acquisition activity as a key reason for the call.
Conclusion
The US stock market is expected to be volatile on Wednesday, as investors await the Federal Reserve’s decision on interest rates and assess the impact of Donald Trump’s trade policies on the economy. The movers will be closely watched, as will the performance of individual stocks such as Nvidia, Google, and Amazon. As the market continues to navigate the uncertainty surrounding the trade war, investors will be looking for any signs of clarity and direction from the Federal Reserve and other market participants.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
