CNBC Business News Update - Market Close: Stocks Higher, Fed Chair Outlined A Solid Economy And Stocks Rose, Bessent Says Americans Must Endure A "Detox Period" 3/7/25

Episode Date: March 7, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger CNBC. Wall Street opens Monday morning after a whipsaw Friday for stocks. The Dow in the end finished higher up 222 points a half percent led higher by shares of IBM. They were up 5% on Friday. The S&P 500 index up 31 points that was a half percent. The NASDAQ was up 126 points, 7 tenths of 1 percent. The major averages all lower for the week though and they're also lower for this month of March. Nvidia shares on Friday popped up almost 2 percent. Target shares hit a 52 week low on Friday but companies who shares hit new all-time highs include McDonald's, KFC, and Taco Bell

parent Yum Brands, Kroger, and AutoZone. On Friday, President Trump talked about new tariffs coming earlier than expected, the markets tanked. Then by Friday afternoon, Fed Chair Jay Powell said some positive things about the U.S. economy and stocks recovered. How long does this uncertainty last? And it is impossible as an investor to make a decision on any stocks almost out there

when tariffs change on an hour by hour basis. There's maximum uncertainty right now and you can't deal with that. Gilman Hills, Jenny Harrington on CNBC. Meantime, some investors say abnormal is the new normal. I think at the end of the day, a lot of this is going to be negotiated away. The problem is negotiations should be behind closed doors.

You just want them to come out and say, we've got a deal. That's messy, but I think we're all going to start getting used to the fact that it's going to continue to be messy. Yardeni researches Ed Yardeni on CNBC. Tesla has lost half of its value. It's erased all of its post-election day gains. And airline and cruise stocks closed out their worst week of the year. Investors fear consumers are pulling back on so-called discretionary spending and instead just spending on their

needs. Fewer jobs were created in the U.S. last month than expected at 151,000. The unemployment rate ticked higher to 4.1 percent. CNBC's senior economics reporter Steve Leesman says this is likely the calm before the storm as the solid labor market could crack. Whatever happened in the period leading up to the date, the cutoff date, which was the 12th, was okay. But didn't most of the government job cuts come after that? It's all after that. And what we're going to learn is the importance of this stability in Washington when it comes to policy to private sector hiring. We're going to learn and we're

learning how much government spending matters inside not just the government sector, but the private sector as well. And Treasury Secretary Scott Bessent told CNBC on Friday the economy is slowing and a detox period is coming. Starting to roll a bit, sure. And look, there's going to be a natural adjustment as we move away from public spending to private spending. The market and the economy have just become hooked. We've become addicted to this government spending,

and there's going to be a detox period. Here's a take on that from CNBC's Squawk on the Street hosts David Faber, Jim Cramer, and Carl Quintanilla. The detox period, the president calls it a disturbance, he calls it an adjustment. The prediction? Pain. The forecast calls for pain. By, Forkess calls for pain. By Monday, attention will turn to uncertainty over whether the government will shut down.

On Friday night, March 14th, the government runs out of money and it's the deadline for a new funding deal. Jessica Edinger, CNBC. Weeknights. I think bonds represent safety in a world where the president's noninflation has become the chief impediment to higher stock prices. Too many companies can be terrible. There's just way too much fear. Mad Money. Weeknight 6 Eastern.

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