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Dollar General was the best performer in a brutal month; airline stocks struggle.

March ended as the worst month for U.S. stocks since December 2022, but that doesn’t mean there weren’t some bright spots in the gray and cloudy skies.

Much has been written about why things have turned south for stocks this year, but March was particularly brutal as markets braced for new tariffs and the threat of recession.

Technology stocks took the biggest hit as the Nasdaq Composite plummeted 8.2% in March, capping off a quarter where it fell 10.4%.

Further, the S&P 500 fell 5.7% in March alone, and was down 4.6% for the quarter. It was the worst month for both of these indexes since December 2022.

The Dow Jones Industrial Average sank 4.2% in March, its worst month since December 2024. It was down 1.3% in Q1.

The Russell 2000 small cap index also had a brutal March, falling 6%, while the S&P 400 Midcap index was down 5.7% last month. The Russell 2000 index was off 9.7% in Q1 while the S&P dropped 6.5% in the first quarter.

Looking at the various sectors within the S&P 500, technology and consumer discretionary stocks were down 7.3% in March while communication services fell 7.1%. The only two sectors in positive territory in March were energy, up 5.3%, and utilities, up 1.5%.

Dollar General was the best stock in March

Amid a sea of red, discount retail store chain Dollar General (NYSE: DG) was the best performer on the S&P 500 in March. We wrote about it earlier in March, calling Dollar General a stock to put on your radar.

Dollar General typically performs well in weaker economies and down stock markets, and it didn’t disappoint, rising 18.5% in March. Dollar General stock is up about 16% year-to-date.

Huntington Ingalls Industries (NYSE: HII) was the second-best stock in March, climbing 16.2% last month to $204 per share. Huntington Ingalls is one of the largest ship and submarine builders in the country, building boats and vessels for the Navy and federal government. Huntington Ingalls stock is up about 8% YTD.

The Mosaic Company (NYSE: MOS) reported the third best return in March, jumping about 12.9% to around $27 per share. Mosaic is a phosphate and potash miner, and those materials are used to fertilize crops. The stock is up 10% YTD.

Delta and United Airlines stocks plummet

The two worst stocks in March were from the airlines industry. Delta Air Lines (NYSE: DAL) stock tanked 27.5% in March, while United Airlines (NYSE: UAL) dropped 26.4% last month.

The two leading U.S. carriers announced in March that they are reducing their seat capacity for the summer months, due to reduced expectations.

Those reduced expectations are in part tied to an economy that is expected to slow down. But they are also due to an anticipated reduction in travel from Europe and Canada, among other regions, due to Trump’s tariff and deportation policies. Many countries have issued travel warnings for their residents visiting the U.S.

Also, many Canadians are boycotting travel to the U.S. with summer bookings to the U.S. down 70%, which has led to seat capacity reductions. This is certainly taking a toll on these stocks.

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