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Key Takeaways
- The S&P 500 slipped 0.2% on Thursday, March 20, 2025, reversing a portion of the previous day's uptick as investors further digested the Fed's latest rate announcement.
- Accenture’s shares fell on the back of weaker than expected quarterly results. Government spending concerns weighed heavily on the consulting firm.
- Darden Restaurants’ shares rose after Olive Garden parent company said it expected consumers to continue spending on dining, despite the economic uncertainty.
The major U.S. equity indexes fell on Thursday, unable add to gains made a day before after the Federal Reserve announced that benchmark interest rates will remain at their current levels. Fed officials remained cautious about the economy and inflation, even though policymakers maintained their projections of two rate cuts in 2018.
The S&P 500 slid 0.2%. The Nasdaq dropped 0.3%, and the Dow closed the session with less than a 0.1% loss.
Accenture (ACN) stock tumbled 7.3%, falling the most of any S&P 500 stock, after the professional services firm missed sales and profit estimates for its fiscal second quarter. Julie Sweet, CEO at the consulting firm, noted that the Trump administration’s focus to reduce government spending had a negative impact on revenue. Analysts at Jefferies, Morgan Stanley and others had reduced their price targets before the announcement of the results, citing a cautious attitude among Accenture’s customers and a slowdown in discretionary expenditure.
Gartner, a research and advisory firm (IT), also faces headwinds relating to government efficiency measures and budget cuts. UBS analysts cut their price target for Gartner stock on Wednesday. They noted that a turbulent economic environment could affect revenue growth in the services provider’s government business. Gartner shares dropped 6.8% today.
Microchip Technology (MCHP) shares fell 6.5%. Macquarie Group, a financial services firm, was hired by the semiconductor maker to assist in the sale of a Tempe, Arizona manufacturing facility. Microchip also announced a $1.35 billion convertible stock offering, which prompted Moody’s ratings agency to downgrade the company’s senior secured debt.
Shares of Darden Restaurants (DRI) jumped 5.8%, marking the S&P 500’s top daily performance, after the parent company of LongHorn Steakhouse released results for its fiscal third quarter. Darden’s CEO stated that, despite quarterly sales falling short of expectations, adjusted earnings met forecasts. The company also expects customers will continue to spend on dining out, despite an uncertain economic climate. The company announced a pilot program that will offer Uber Eats from 10 Cheddar’s Scratch Restaurants.
Jabil (JBL), an electronics manufacturer, reported better-than expected quarterly sales and profit. Its shares rose 3.1%. Circuit board maker Jabil (JBL) cited strength in various markets, such as cloud and data center infrastructure. Jabil also increased its full-year revenue and profit guidance due to strong demand for its semiconductor testing and fabrication equipment.
Allstate (ALL), following the release of its monthly results for the month of February, saw a 2.6% gain. This is a record high. The company’s estimated catastrophe losses for February were $92 million. This is a sharp drop from the estimated catastrophe losses of more than $1 billion the previous month, which reflected the impact caused by the devastating wildfires that ravaged California. The firm also reported that the number of Allstate Protection insurance policies in force increased slightly month-over-month.
