Bloodbath in US Markets, S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market witnessed a chaotic morning on Monday, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in over six months. The sell-off was sparked by concerns over US President Donald Trump’s impending announcement of new tariff plans, which has fueled worries about a potential recession.
At 09:44 am (US time), the S&P 500 was trading at 5,499.04, down 81.90 points (1.47%) from the previous close. The Nasdaq Composite Index was also severely affected, falling 409.48 points (2.36%) to 16,913.52. The massive selloff was widespread, with most major indices experiencing significant losses.
The Dow Jones Industrial Average, which is considered a benchmark for the overall US stock market, was down 534.83 points (1.85%) to 31,460.13. The Russell 2000 Index, which tracks small-cap stocks, was also severely affected, plummeting 54.42 points (3.35%) to 1,623.23.
The sell-off was fueled by concerns that Trump’s new tariff plans, which are expected to be announced soon, could lead to a significant increase in trade tensions with major US trading partners. This, in turn, could negatively impact the US economy, leading to a recession.
“The market is pricing in a higher risk of a recession due to the uncertainty surrounding Trump’s tariff plans,” said Michael Antonelli, a market strategist at Robert W. Baird & Co. “Investors are becoming increasingly risk-averse, and the market is reacting accordingly.”
The selloff was not limited to the US market, with major indices in Europe and Asia also experiencing significant losses. The Euro Stoxx 50 Index, which tracks the 50 largest companies in the Eurozone, was down 1.5% to 3,555.75. The Nikkei 225 Index in Japan was also severely affected, falling 2.2% to 24,964.83.
The sell-off was triggered by a combination of factors, including concerns over the impact of Trump’s tariff plans on the US economy, as well as worries about the global economy. The market is also reacting to the ongoing uncertainty surrounding the COVID-19 pandemic, which has had a significant impact on the global economy.
“The pandemic has created a lot of uncertainty, and investors are becoming increasingly risk-averse,” said Antonelli. “The market is pricing in a higher risk of a recession due to the uncertainty surrounding Trump’s tariff plans and the ongoing pandemic.”
The selloff has left many investors wondering whether the market has reached a bottom or if there is still more to come. While it’s impossible to predict with certainty, many analysts believe that the market may experience further volatility in the coming days and weeks.
“The market is likely to remain volatile in the short term, as investors wait for more clarity on Trump’s tariff plans and the global economic outlook,” said Antonelli. “However, in the long term, the market is likely to recover as investors become more confident in the US economy.”
In conclusion, the bloodbath in US markets on Monday was a stark reminder of the uncertainty and volatility that has characterized the market in recent months. While the selloff was triggered by concerns over Trump’s tariff plans, it’s clear that the market is also reacting to the ongoing uncertainty surrounding the global economy and the COVID-19 pandemic.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
