The Great Depression led to the creation of the Securities and Exchange Commission (SEC) in 1934 to regulate Wall Street and restore investor confidence.
After the stock market crash of 1929, public trust in financial markets collapsed. The U.S. government responded with a series of reforms under the New Deal, including the Securities Act of 1933 and the Securities Exchange Act of 1934, which created the SEC.
The SEC was designed to enforce federal securities laws, promote fair markets, and protect investors—roles it still plays today in helping ensure market transparency and accountability.
Market Wrap
U.S. stock markets experienced sharp declines on Friday, March 28, 2025, as hotter-than-expected inflation data, falling consumer sentiment, and ongoing trade tensions unsettled investors and raised fears of stagflation.
Hot Inflation Data:
The Personal Consumption Expenditures (PCE) Price Index rose 0.3% in February, while core PCE increased 0.4%, its fastest pace in over a year. These figures exceeded expectations and signal that inflation remains stubbornly high, complicating the Federal Reserve’s path forward.
Fed Officials Signal Caution:
In an interview on Friday, San Francisco Fed President Mary Daly stated that recent inflation data shows progress has been “flat,” diminishing her confidence that interest rate cuts will be appropriate in the near term. Her comments added to market uncertainty over the Federal Reserve's next steps.
Consumer Sentiment Deteriorates:
The University of Michigan’s consumer sentiment index dropped to 57.0 in March from 64.7, its lowest reading in over two years. Consumers cited rising concerns about inflation and job security, adding to fears about weakening demand.
Stagflation Fears Surface:
The combination of persistent inflation and slowing growth in consumer spending raised concerns about stagflation. One-year inflation expectations surged to 5%, and analysts are warning of an increasingly difficult economic environment.
Meta Platforms Inc. shares fell 4% amid a broader technology sector sell-off, as investors reacted to inflation data and tariff announcements, highlighting concerns about the company's advertising revenue in a slowing economy.
Intel Corporation. shares fell 4% following reports of supply chain disruptions and increased competition in the semiconductor industry, raising concerns about the company's market share and profitability.
AppLovin Corporation. shares rose 4% after a significant decline the previous day, as investors reacted to a short-seller report alleging inappropriate business practices. The report accused AppLovin of misappropriating data and violating partners' terms of service, potentially hindering growth and leading to possible boycotts or blocks by partners. The company has refuted these claims and initiated an independent investigation to address the allegations.
Lululemon Athletica Inc. shares plunged 14% after the activewear retailer provided a bleak annual outlook, citing concerns over potential revenue growth slowdown due to economically cautious consumers. This decline underscores the market's sensitivity to consumer sentiment and spending behaviors.
W.R. Berkley Corporation. shares gained nearly 8% following news of a new investment, boosting investor confidence in the company's growth prospects and financial stability.
Rocket Lab USA Inc. shares gained after positive earnings news and contract selections, boosting investor confidence in the company's growth prospects in the aerospace industry.
Unlock Exclusive Insights!
You can preview data for the Magnificent Seven now :
