Bloodbath in US Markets: S&P 500 and Nasdaq at over 6-month lows
The US stock market is in turmoil, with the S&P 500 and Nasdaq indexes plummeting to over six-month lows on Monday. The massive selloff was fueled by concerns over the upcoming announcement of tariff plans by US President Donald Trump, leading to widespread panic among investors.
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. The sharp decline in the indices was a stark reminder of the volatility that has characterized the US stock market in recent years.
The sell-off was led by technology and financial stocks, with giants like Apple, Amazon, and Facebook all seeing significant declines. The Dow Jones Industrial Average also fell, dropping 245.11 points (0.85%) to 24,815.52.
The cause of the panic was the anticipation of President Trump’s announcement on tariffs, which has sparked concerns over the potential impact on the economy. The tariffs, which are expected to be imposed on certain imported goods, have raised fears of a trade war and led to a sharp decline in investor confidence.
“We’re seeing a flight to safety, with investors fleeing to bonds and other safe-haven assets,” said Michael Antonelli, a market strategist at Robert W. Baird & Co. “The tariffs are a risk-off event, and investors are getting out of stocks and into bonds.”
The decline in the US stock market has also led to a selloff in other global markets, with European and Asian stocks also seeing significant declines. The Japanese Nikkei 225 index fell 2.1%, while the German DAX index dropped 1.8%.
The impact of the tariffs on the US economy is still unclear, but economists are warning of potential risks. “The tariffs could lead to higher prices for consumers, which could lead to lower consumption and ultimately lower economic growth,” said Mark Zandi, chief economist at Moody’s Analytics.
The tariffs could also lead to retaliatory measures from other countries, which could further exacerbate the situation. “A trade war is not just about tariffs, it’s about the impact on global supply chains and the potential for retaliatory measures,” said Dr. Peter Morici, a professor of economics at the University of Maryland.
Despite the volatility in the US stock market, some experts are urging investors to stay calm and not panic. “This is just a normal correction in the market,” said Joe Saluzzi, co-head of equity trading at Themis Trading. “We’ve seen this before, and we’ll see it again. Investors should not be too concerned.”
The US Federal Reserve has also weighed in on the situation, with Fed Chairman Jerome Powell saying that the central bank is closely monitoring the situation. “We’re watching the situation closely and will take action if necessary to support the economy,” Powell said.
In conclusion, the recent decline in the US stock market is a stark reminder of the volatility that can occur in financial markets. While the tariffs may pose a risk to the US economy, experts are urging investors to stay calm and not panic. The situation remains fluid, and investors should continue to monitor the situation closely.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
