Market Highlight 17.03.2025

The recent decline in the U.S stock market has significantly impacted spending among high-income groups in the economy. As of last Thursday, the S&P 500 closed more than 10% lower than its February peak, fueling concerns about a potential recession in the world’s largest economy. The stock market downturn may only be the beginning of a chain reaction that could cause broader disruptions across other U.S markets. According to estimates by Harvard University economists, a 20% decline in stock prices could reduce U.S GDP growth by approximately 1% in 2025. Falling stock prices may weaken the two primary drivers of U.S economic prosperity: robust household spending and corporate investment capital. This is why some economists fear the current situation could prompt consumers to cut back on everything from vacations to new clothing purchases. The S&P 500 surged 53% across 2023 and 2024, reflecting the U.S economy’s strong outperformance relative to the rest of the world. Alongside rising home prices, the stock market rally provided high-income individuals with more disposable wealth. By the end of 2024, stocks accounted for 43% of U.S household financial assets, the highest share on record, according to Federal Reserve data. U.S retail sales in January declined by 0,9%, marking the largest monthly drop since 2023, while February’s data is set to be released later tonight.

The USD Index edged down by -0,12% last week, following a sharper -3,5% decline the previous week, as weak economic data from the U.S persisted. The USD/VND interbank rate closed at 25.520 at the end of last week’s trading session, with an upward trend expected to continue this week toward the 25.600 range, driven by rising USD payment demand in the latter half of March.

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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn