Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market experienced a bloodbath on Monday, with the S&P 500 and Nasdaq indexes plummeting to over six-month lows. The massive sell-off was fueled by investor worries over US President Donald Trump’s upcoming announcement of tariff plans, which has raised concerns of a potential recession.
At 09:44 am (US time), the S&P 500 index was down 81.90 points, or 1.47%, to 5,499.04. The Nasdaq index was down 409.48 points, or 2.36%, to 16,913.52. These declines marked the lowest levels for both indexes since September 2024.
The sharp decline in the US markets was not limited to the S&P 500 and Nasdaq. The Dow Jones Industrial Average also fell, down 246.55 points, or 0.77%, to 32,342.31. The Russell 2000 index of small-cap stocks was down 2.14%, while the S&P 500’s technology sector fell 3.04%.
The sell-off was widespread, with nearly all sectors of the S&P 500 experiencing significant declines. The energy sector was the worst performer, down 3.53%, followed by the financials sector, which fell 2.55%. The technology sector, which has been a bright spot for the US market in recent months, also fell 2.35%.
The declines in the US markets were mirrored in other global markets. The Stoxx Europe 600 index fell 1.45%, while the MSCI Asia Pacific index declined 1.93%. The Japanese Nikkei 225 index fell 2.15%, while the Chinese Shanghai Composite index fell 1.46%.
The causes of the sharp decline in the US markets are complex and multifaceted. One major factor was the uncertainty surrounding President Trump’s upcoming announcement of tariff plans. Trump has threatened to impose tariffs on up to $200 billion worth of Chinese goods, which has raised concerns of a potential trade war. This uncertainty has led many investors to take a cautious approach, selling their stocks in anticipation of a potential downturn.
Another factor contributing to the decline was the recent weakness in the global economy. While the US economy has been growing at a steady pace, many other major economies, such as the eurozone and Japan, have been experiencing slowing growth. This has led to concerns that the global economy may be heading into a recession.
Additionally, the decline in the US markets was also fueled by concerns over the rising yield on the 10-year Treasury note. The yield on the 10-year note rose to 2.71% on Monday, its highest level since 2018. This rise in yields has made bonds more attractive to investors, leading to a decline in stock prices.
In conclusion, the bloodbath in the US markets on Monday was a major event, with the S&P 500 and Nasdaq indexes falling to over six-month lows. The declines were fueled by investor worries over President Trump’s upcoming announcement of tariff plans, as well as concerns over the global economy and rising bond yields. As investors navigate this uncertain environment, it will be important to stay informed and adapt to changing market conditions.
Source: https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
