Stocks Rebound Slightly, Senate Passes Spending Bill, and Tesla Faces Mixed Market Trends

 U.S. stocks surged to their best performance since the election this last Friday (03/14/25), though the rally wasn’t enough to prevent Wall Street from logging its fourth consecutive losing week.

The S&P 500 climbed 2.1%, rebounding a day after slipping into correction territory for the first time since 2023. The Dow Jones Industrial Average gained 1.7%, while the tech-heavy Nasdaq composite rose 2.6%.

Ulta Beauty was among the market leaders after reporting stronger-than-expected earnings for its latest quarter. Investors have been increasingly concerned that U.S. consumers may cut back on spending due to uncertainty surrounding tariffs.

On Friday:

•The S&P 500 rose 117.42 points, or 2.1%, to 5,638.94.

•The Dow rose 674.62 points, or 1.7%, to 41,488.19.

•The Nasdaq climbed 451.07 points, or 2.6%, to 17,754.09.

•The Russell 2000 index of smaller companies gained 50.40 points, or 2.5%, to 2,044.10.

For the week:

•The S&P 500 fell 131.26 points, or 2.3%.

•The Dow dropped 1,313.53 points, or 3.1%.

•The Nasdaq lost 442.13 points, or 2.4%.

•The Russell 2000 declined 31.39 points, or 1.5%.

Markets Open the Week on a Positive Note

After weeks of turbulent swings, U.S. stocks continued to climb on Monday, extending Friday’s gains. The S&P 500 rose 0.6%, marking its second consecutive day in the green after dipping into correction territory last week. The Dow Jones Industrial Average saw a 0.9% increase, while the Nasdaq composite added 0.3%.

Investors remain cautious as they anticipate a Federal Reserve decision on interest rates later this week. Concerns over President Donald Trump’s ongoing trade policies continue to weigh on the market. Additionally, while a recent retail sales report fell short of expectations, analysts suggest the data may not be as negative as it initially appeared.

Monday’s Market Performance:

•The S&P 500 gained 36.18 points, or 0.6%, closing at 5,675.12.

•The Dow Jones Industrial Average climbed 353.44 points, or 0.9%, to finish at 41,841.63.

•The Nasdaq composite increased by 54.58 points, or 0.3%, to 17,808.66.

•The Russell 2000, which tracks smaller companies, rose 24.24 points, or 1.2%, to 2,068.33.

Senate Passes Spending Bill, Averting Government Shutdown

The Senate approved a Republican-backed spending bill late Friday (03/14/25), narrowly avoiding a government shutdown. The measure now heads to President Donald Trump for his signature.

The 54-46 vote came after intense debate, with Democrats voicing frustration over the bill’s lack of funding for health care, housing, and other priorities. Despite their opposition, enough Democrats ultimately sided with Senate Minority Leader Chuck Schumer to prevent a shutdown.

“A shutdown would allow the Department of Government Efficiency to accelerate its mission of dismantling vital services,” Schumer said. “We couldn’t allow that to happen.”

Democrats faced a tough choice: either approve a bill that grants the Trump administration broad spending authority or risk a government shutdown. In the end, 10 Democrats voted to advance the bill, while two supported its final passage. Sen. Rand Paul, R-Ky., was the lone Republican to oppose it.

The legislation funds the government for the next six months.

Tesla Stock Surges Amid Big Tech Rally and Trump’s Support, While Used EV Prices Hit New Lows

Tesla Inc. (NASDAQ: TSLA) saw a nearly 4% rise in its stock price during Friday’s trading session, benefiting from a broader rally in the tech sector. This positive movement comes as the Roundhill Magnificent Seven ETF, which tracks top tech giants like Apple, Microsoft, Amazon, and Nvidia, gained 2.6%, according to FactSet data.

What’s Fueling Tesla’s Growth?

Tesla’s stock has been bouncing back due to advancements in electric vehicle (EV) technology and increasing demand for sustainable energy solutions. However, another factor that played a role in this recent surge was former President Donald Trump’s public support for Tesla and CEO Elon Musk.

President Trump, known for his traditional preferences, surprised many by announcing he purchased a Tesla Model S. “I like a check better than this modern system of, all of a sudden, there’s money in your account,” President rump said. “I know he’d give me a discount, but honestly, I don’t want to ask for one.”

President Trump commented during a public event.

His endorsement highlighted Tesla’s innovation and American manufacturing strength, which boosted investor confidence.

A Shift in the Used EV Market

While Tesla’s stock is on the rise, the used electric vehicle market is seeing significant price drops. A recent study by iSeeCars revealed that the average price of a used EV has fallen by 15.1% over the past year, equating to a $5,709 drop.

Tesla experienced the biggest price decline among all brands, with used models losing an average of $5,013 in value, or 13.6%. This decrease was larger than other brands like Maserati (10.6%), Chrysler (7.6%), and Chevrolet (6.5%).

The Porsche Taycan saw the most dramatic drop, falling 26.5% to an average price of $73,976. Tesla’s Model S dropped 16.2% to $49,366, while the Model Y declined 15.9% to $31,247.

Affordable Options for EV Buyers

For those looking to switch to electric, this price decline opens the door for more affordable options.

•The Nissan Leaf averages below $17,000.

•The Hyundai Kona is priced around $20,329 after a 13.4% decline.

•The Kia Niro now averages $21,758 after a 12.3% drop.

•Tesla’s Model 3 is nearing the $25,000 range, currently averaging $26,354 after a 13.5% decrease.

What’s Next for Tesla?

While Tesla’s stock benefits from positive market momentum and high-profile endorsements, the company faces challenges with declining used EV prices and growing competition from other automakers.

However, for consumers, this shift creates an excellent opportunity to transition to electric vehicles at a more affordable price.

With Tesla leading innovation in the EV industry, investors and car buyers alike are watching closely to see what’s next for the company.