Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market took a drastic turn on Monday, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in over six months. At 09:44 am (US time), the S&P 500 was down 81.90 points (1.47%) to 5,499.04, while the Nasdaq dropped 409.48 points (2.36%) to 16,913.52. The massive selloff was fueled by investor concerns over US President Donald Trump’s upcoming announcement of tariff plans, sparking recession worries and sending markets into a tailspin.
The decline in the S&P 500 and Nasdaq was widespread, with all 11 sectors of the S&P 500 posting losses. Technology stocks, which have been a driving force behind the market’s recent gains, were among the hardest hit, with the Nasdaq 100 index plummeting 3.4%. The Dow Jones Industrial Average also fell, shedding 537.27 points (1.74%) to 26,415.05.
The sudden downturn in the market was triggered by a report that President Trump was preparing to announce new tariffs on imported steel and aluminum, which sent shockwaves through the global economy. The prospect of increased tariffs has raised concerns about a potential trade war, sparking fears of a recession.
Investors were already on edge ahead of Trump’s expected announcement, and the news only added to the anxiety. “We’re seeing a classic case of a market that’s been driven higher by low interest rates and easy money, and now we’re seeing a reversal of that,” said Michael Antonelli, market strategist at Robert W. Baird.
The rout in the markets was not limited to the US, with European and Asian markets also experiencing significant declines. The FTSE 100 in London fell 1.3%, while the DAX in Germany dropped 1.5%. In Asia, the Nikkei 225 in Japan plummeted 2.3%, while the Shanghai Composite in China fell 1.2%.
The bloodbath in the markets has left many investors wondering what’s next for the US economy. While some argue that the decline is a necessary correction, others are sounding the alarm about the potential for a recession.
“We’re not predicting a recession, but we’re saying that the risk is increasing,” said Mark Zandi, chief economist at Moody’s Analytics. “The biggest risk is that the trade tensions escalate and become more widespread, which would have a significant impact on the economy.”
Others are more optimistic, arguing that the market decline is a buying opportunity. “This is a classic case of a market correction, and we’re seeing a lot of value coming back into the market,” said Brian Reynolds, chief market strategist at Rosenblatt Securities.
Despite the uncertainty, one thing is clear: the US market is in for a wild ride in the coming weeks. As President Trump prepares to make his announcement, investors will be closely watching for any signs of a trade war or recession. In the meantime, the S&P 500 and Nasdaq will likely continue to experience volatility, making it a challenging time for investors.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
