Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market witnessed a dramatic downturn on Monday, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in over six months. The sudden sell-off was fueled by investors’ growing concerns over US President Donald Trump’s impending announcement of tariff plans, sparking fears of a potential recession.
As of 09:44 am (US time), the S&P 500 was down 81.90 points, or 1.47%, to 5,499.04, while the Nasdaq composite index tumbled 409.48 points, or 2.36%, to 16,913.52. The indices’ sharp decline was a stark reminder of the market’s vulnerability to global economic threats and the uncertainty surrounding Trump’s tariff proposals.
The sell-off was widespread, with major sectors such as technology, financials, and healthcare experiencing significant losses. The Dow Jones Industrial Average also fell, slipping 250.33 points, or 0.83%, to 32,635.15. The broader S&P 500 index, which tracks the performance of 500 large-cap US stocks, was down 1.47%, while the Nasdaq composite index, which is heavily weighted towards technology stocks, plunged 2.36%.
The market’s sharp decline was attributed to investors’ growing unease over Trump’s planned announcement of tariffs on certain imported goods. The tariffs, which are expected to be revealed in the coming days, have sparked concerns that they could lead to a trade war, disrupting global supply chains and potentially triggering a recession.
“The market is getting nervous about the tariffs, and the uncertainty is driving the sell-off,” said Michael Antonelli, market strategist at Robert W. Baird & Co. “Investors are worried about the potential impact on the economy and the potential for a trade war.”
The market’s reaction was not surprising, given the recent volatility in global markets. The S&P 500 has fallen over 10% since its February 19 peak, while the Nasdaq composite index has slid over 12% during the same period. The sell-off has been fueled by concerns over the global economy, including the impact of the Covid-19 pandemic, rising inflation, and the uncertainty surrounding trade policies.
In addition to the tariff concerns, investors are also grappling with the potential implications of the Federal Reserve’s monetary policy decisions. The Fed has been steadily reducing its balance sheet, a move that has been seen as a sign of tightening monetary policy. The central bank’s actions have led to increased borrowing costs, which has weighed on the market’s sentiment.
Despite the market’s sharp decline, some analysts remain optimistic about the US economy’s prospects. “The US economy is still growing, and the fundamentals are strong,” said Mark Kepner, director of investment strategy at Themis Trading. “While the market is volatile, we believe the economy will continue to grow, and the tariffs will ultimately be a short-term blip.”
In conclusion, the S&P 500 and Nasdaq indexes’ plunge to over 6-month lows is a stark reminder of the market’s vulnerability to global economic threats and the uncertainty surrounding Trump’s tariff proposals. While the sell-off has been significant, some analysts remain optimistic about the US economy’s prospects and believe that the tariffs will ultimately be a short-term blip.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
