Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market witnessed a brutal selloff on Monday, with the S&P 500 and Nasdaq indexes plummeting to over six-month lows. The massive sell-off was triggered by worries over US President Donald Trump’s upcoming announcement of tariff plans, which has sent shockwaves through the global financial markets.
At 09:44 am (US time), the S&P 500 was down 81.90 points (1.47%) to 5,499.04, while the Nasdaq was down 409.48 points (2.36%) to 16,913.52. This sharp decline in the two major indices is a stark reminder of the volatility that has characterized the global markets in recent times.
The selloff was not limited to the S&P 500 and Nasdaq. Other major indices, including the Dow Jones Industrial Average, the Russell 2000, and the S&P MidCap 400, also took a beating, with losses ranging from 1.5% to 3.5%. The CBOE Volatility Index (VIX), which measures market anxiety, surged 21.3% to 24.5, its highest level since October 2022.
The culprit behind this bloodbath in the US markets is President Trump’s plan to impose tariffs on imported steel and aluminum. The White House has indicated that the tariffs, which are expected to be announced soon, will be aimed at protecting American industries and creating jobs. However, investors are worried that the tariffs will lead to a trade war with China and other countries, which could have devastating consequences for the global economy.
The fear of a trade war has sent shockwaves through the global markets, with stocks plummeting across the board. The European Stoxx 600 index fell 1.4%, while the UK’s FTSE 100 index dropped 1.2%. In Asia, the Nikkei 225 index in Japan tumbled 2.1%, while the Shanghai Composite index in China fell 1.7%.
The selloff in the US markets was also fueled by concerns over the economy’s ability to withstand the tariffs. The Trump administration’s plan to impose tariffs on steel and aluminum imports has sparked fears that it could lead to a recession. The yield on the 10-year Treasury note fell to 2.34%, its lowest level since October 2022, as investors sought safe-haven assets.
The bloodbath in the US markets has sent a clear message to investors: the global economy is facing unprecedented uncertainty. The trade war between the US and China, the collapse of global trade talks, and the rising risk of a recession have all contributed to the volatility in the markets.
In the face of such uncertainty, investors are seeking safe-haven assets, such as gold and bonds. The price of gold surged 1.3% to $1,350.50 an ounce, its highest level since October 2022. The yield on the 10-year Treasury note fell to 2.34%, its lowest level since October 2022.
In conclusion, the bloodbath in the US markets is a stark reminder of the volatility that has characterized the global markets in recent times. The fear of a trade war and the uncertainty surrounding the global economy have sent shockwaves through the markets, with stocks plummeting across the board. As investors navigate this uncertain terrain, they would do well to remember that uncertainty is a constant companion in the world of finance, and that it is only by being prepared for the unexpected that they can protect their wealth.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
