Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market has witnessed a massive selloff, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in more than six months. The decline has left investors worried about the potential impact of US President Donald Trump’s upcoming announcement on tariffs.
At 09:44 am (US time) on Monday, the S&P 500 was down 81.90 points, or 1.47%, to 5,499.04. The Nasdaq Composite Index was down 409.48 points, or 2.36%, to 16,913.52. The sharp decline in the indices has triggered a widespread selloff, with technology stocks, including those of major companies like Apple, Amazon, and Microsoft, leading the way.
The causes of the selloff are multifaceted, but the primary concern is the uncertainty surrounding President Trump’s planned announcement on tariffs. The announcement is expected to reveal the administration’s stance on tariffs, which could have a significant impact on the global economy. Investors are worried that the tariffs could lead to a trade war, which could ultimately result in a recession.
The selloff has been attributed to the uncertainty surrounding the tariffs, as well as the decline in the US dollar. The dollar fell against other major currencies, including the euro and the yen, which has led to a decline in the value of US assets. This has made them less attractive to investors, contributing to the decline in the stock market.
The S&P 500 and Nasdaq indexes have been under pressure in recent weeks, with the S&P 500 down around 12% from its highs earlier this year and the Nasdaq down around 15%. The decline has been attributed to a range of factors, including concerns over the global economy, inflation, and the potential impact of tariffs.
However, the recent selloff has been particularly intense, with the S&P 500 and Nasdaq indexes falling by more than 3% each. The decline has left many investors worried about the potential impact on the economy, with some predicting a recession.
The selloff has also led to a decline in the value of other assets, including bonds and commodities. The yield on the 10-year US Treasury note fell to its lowest level in over a year, while the price of gold rose to its highest level in over six months. The decline in the value of assets has led to a decline in investor confidence, contributing to the continued decline in the stock market.
Despite the decline, many investors remain optimistic about the long-term prospects of the US stock market. The S&P 500 and Nasdaq indexes have historically experienced declines, but they have also consistently recovered over time. Many investors believe that the current decline is a buying opportunity, with the potential for the indexes to recover in the coming months.
In conclusion, the recent selloff in the US stock market has been significant, with the S&P 500 and Nasdaq indexes falling to their lowest levels in over six months. The decline has been attributed to a range of factors, including concerns over the global economy, inflation, and the potential impact of tariffs. While the decline has left many investors worried, many remain optimistic about the long-term prospects of the US stock market.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
