Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market has witnessed a devastating day 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 investors’ growing concerns over US President Donald Trump’s upcoming announcement of tariff plans, which has sparked worries about 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 was down 409.48 points, or 2.36%, to 16,913.52. The indices’ decline was one of the sharpest in recent years, with the S&P 500 experiencing its worst single-day percentage decline since October 2022.
The sell-off was widespread across various sectors, with technology and financial stocks being the hardest hit. The technology-heavy Nasdaq Composite Index was particularly affected, with many prominent tech companies such as Amazon, Alphabet, and Facebook losing significant value.
The decline in the US markets was mirrored in other global markets, with European stocks also experiencing a significant sell-off. The pan-European STOXX 600 Index fell 1.3% to its lowest level since November 2022, while the UK’s FTSE 100 Index dropped 1.1% to its lowest level since March 2022.
The selloff in the US markets was triggered by concerns over the potential impact of Trump’s upcoming tariff announcement on the global economy. The President has been threatening to impose tariffs on imported steel and aluminum, which has sparked worries about a trade war with major trading partners such as China and the European Union.
Investors are also concerned about the potential impact of tariffs on the US economy, which is already showing signs of slowing down. The US Federal Reserve has been warning about the risks of a recession, and the recent decline in the stock market has only added to those concerns.
The US-China trade tensions have been a major source of concern for investors in recent months. The two countries have been engaged in a trade war, with each side imposing tariffs on the other’s goods. The tensions have led to a decline in global trade and a slowdown in economic growth.
In addition to the trade tensions, the US Federal Reserve’s decision to raise interest rates has also been a major source of concern for investors. The Fed has been raising interest rates to combat inflation, but higher interest rates can make borrowing more expensive and slow down economic growth.
The recent decline in the stock market has also been attributed to the ongoing volatility in the cryptocurrency market. Bitcoin and other major cryptocurrencies have been experiencing a significant decline in value in recent months, which has led to a decline in investor confidence.
In conclusion, the recent decline in the US stock market has been a major source of concern for investors. The S&P 500 and Nasdaq indexes have fallen to their lowest levels in over six months, and the decline has been attributed to concerns over Trump’s upcoming tariff announcement, trade tensions with China, and the Fed’s decision to raise interest rates.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
