S&P 500 Market Update: Lululemon Stock Plunges as Soft Traffic Dampens Outlook
3 min read
MARCH 29,2025
The S&P 500 market update reveals a rough close to the week, with the S&P 500 tumbling 2.0% on Friday, March 28, as the Federal Reserve’s preferred inflation measure signaled persistent price pressures. Consumer sentiment also weakened significantly, fueling concerns about economic uncertainty and potential tariff escalations. Investors are closely monitoring stock movements and economic indicators to gauge the market’s trajectory in this S&P 500 market update.
Key Stock Market Highlights from the S&P 500 Market Update
Lululemon (LULU) Stock Crashes 14.2% After Weak Outlook
Lululemon Athletica, a leading activewear brand, saw its stock plummet 14.2%—the biggest decline among S&P 500 stocks. While the company exceeded revenue and earnings expectations for its fiscal fourth quarter, its guidance for the current quarter and full year fell short. Executives attributed the lackluster outlook to declining foot traffic as budget-conscious consumers curb discretionary spending.
JPMorgan analysts lowered their price target on LULU, citing additional headwinds from tariffs and currency exchange fluctuations that could squeeze profit margins. The downturn raises concerns for the broader athleisure market, as brands navigate shifting consumer behaviors in an inflationary economy.
Warner Bros. Discovery (WBD) Struggles Amid Weak Movie Sales in S&P 500 Market Update
Warner Bros. Discovery shares dropped 5.8% following a New York Times report detailing CEO David Zaslav’s challenges in revamping the entertainment conglomerate. The company continues to struggle with 40% lower box office sales compared to 2019. To streamline operations, Warner Bros. Discovery announced a restructuring of its streaming content acquisition teams, aiming to align its strategies across Max and Discovery+.
Dollar Tree (DLTR) Slips 5.5% After Family Dollar Sale Announcement
Dollar Tree, a major player in the discount retail sector, saw its stock fall 5.5%, reversing some of the gains from earlier in the week. The company recently announced it would sell its Family Dollar brand for $1 billion, a move analysts believe could boost profitability and attract value-conscious shoppers. However, concerns about tariff-related challenges weighed on investor sentiment.
W.R. Berkley (WRB) Hits Record High with 7.5% Surge
Insurance firm W.R. Berkley posted the strongest performance in the S&P 500, surging 7.5% to an all-time high. The rally followed news that Japan’s Mitsui Sumitomo Insurance (MSI) will acquire a 15% stake in the company. MSI will purchase shares on the open market and from third parties, reinforcing its investment in W.R. Berkley’s long-term growth. The company assured investors that the deal will not affect its day-to-day operations.
Welltower (WELL) Gains 2.3% After Credit Rating Upgrade
Welltower (WELL), a leading real estate investment trust (REIT) focused on healthcare infrastructure, rose 2.3% after S&P Global upgraded its issuer rating. Analysts expect Welltower to continue strengthening its balance sheet and credit metrics over the next two years.
American Water Works (AWK) Rises 2.2% on $40B Infrastructure Plan
American Water Works (AWK), the largest regulated water and wastewater utility in the U.S., gained 2.2% after announcing a $40 billion investment in national infrastructure over the next decade. The initiative aims to enhance the nation’s water supply systems, reflecting a long-term commitment to sustainability and public health.
Market Overview: Inflation & Consumer Sentiment Weigh on Stocks
The broader market saw sharp losses on Friday:
- S&P 500: Down 2.0%
- Dow Jones Industrial Average: Down 1.7%
- Nasdaq Composite: Plunged 2.7%
All three major U.S. stock indexes ended the week in the red as inflationary pressures, declining consumer confidence, and economic uncertainty led to widespread selling. Investors are now eyeing Federal Reserve policy decisions, tariff developments, and retail sector performance as key indicators of what’s next for the market.
Final Thoughts: What This Means for Investors
The S&P 500 market update highlights growing concerns over inflation and its impact on consumer behavior. Lululemon’s weak traffic numbers serve as a warning for the broader retail sector, while the insurance and utility industries show signs of resilience.
As markets navigate economic headwinds, investors should stay vigilant, diversify their portfolios, and track evolving trends in consumer spending, Federal Reserve policy, and international trade dynamics.
READ MORE: Market Jitters: Why Stocks and Bitcoin Are Struggling Under Trump’s New Term
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