Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market witnessed a dramatic bloodbath on Monday, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in over six months. The massive selloff was fueled by growing concerns over US President Donald Trump’s impending announcement of tariff plans, which has left investors on edge, worried about the potential impact on the economy.
As of 09:44 am (US time), the S&P 500 index 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 sharp decline has sent shockwaves through the market, with many experts warning of a potential recession.
The selloff was not limited to the S&P 500 and Nasdaq. The Dow Jones Industrial Average also fell sharply, dropping 346.52 points, or 1.14%, to 32,253.72. The Russell 2000 index of small-cap stocks plummeted 2.14% to 1,946.62.
The sharp decline in the US markets was mirrored in global markets, with Asian stocks also falling sharply. The Nikkei 225 index in Japan tumbled 1.23%, while the Hang Seng index in Hong Kong dropped 1.12%. European markets also opened lower, with the pan-European STOXX 600 index falling 0.7%.
The primary catalyst for the selloff was the uncertainty surrounding President Trump’s upcoming announcement of tariff plans. The President has been considering imposing new tariffs on imported goods, which has sparked concerns among investors about the potential impact on the economy.
The tariffs, which are expected to be announced in the coming days, have raised fears of a trade war between the US and its major trading partners, including China, the European Union, and Mexico. The prospect of tariffs has sent shockwaves through the market, as investors worry about the potential impact on global trade and economic growth.
The selloff was also fueled by concerns over the US economy, which has been showing signs of slowing down in recent months. The US Federal Reserve has cut interest rates several times in recent months, in an effort to boost economic growth. However, the Fed’s actions have not been enough to stem the tide of the slowing economy.
The decline in the US markets has also been exacerbated by the ongoing spread of the COVID-19 pandemic, which has disrupted global supply chains and led to a surge in unemployment claims. The pandemic has also led to a decline in consumer spending, which has hurt economic growth.
In addition to the tariffs and economic concerns, the selloff was also fueled by the decline in oil prices. The price of West Texas Intermediate crude oil fell 2.2% to $44.13 a barrel, amid concerns over the impact of the pandemic on global demand.
The bloodbath in the US markets has sent a warning signal to investors, warning them of the potential risks of a trade war and a slowing economy. The sharp decline has also raised concerns about the potential impact on the US dollar, which has weakened in recent months.
As the market continues to fluctuate, investors are left wondering what the future holds. Will the tariffs announced by President Trump lead to a trade war, or will they spark a new wave of economic growth? Only time will tell.
Source: https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
