Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market has been experiencing a tumultuous ride over the past few weeks, and on Monday, the situation took a drastic turn for the worse. The S&P 500 and Nasdaq stock market indexes plummeted to their lowest levels in more than six months, sending shockwaves through the global financial community.
As of 09:44 am (US time), the S&P 500 was down a staggering 81.90 points, or 1.47%, to 5,499.04. The Nasdaq, meanwhile, fell by 409.48 points, or 2.36%, to 16,913.52. The massive selloff was fueled by growing concerns over US President Donald Trump’s upcoming announcement of tariff plans, which have been weighing heavily on investors’ minds.
The news sent the futures tumbling, with the S&P 500 futures down 1.3% and the Nasdaq futures down 2.1%. The Dow Jones Industrial Average also took a hit, falling 1.1% to 26,411.22.
The sell-off was widespread, with nearly all sectors of the S&P 500 experiencing significant losses. Technology stocks, which have been a bright spot in recent months, were particularly hard hit, with the Nasdaq Composite Index falling to its lowest level since October 2024.
The bloodbath in the US markets has been building for some time now, with investors growing increasingly concerned about the potential impact of Trump’s tariff plans on the global economy. The President has threatened to impose tariffs on up to $300 billion worth of Chinese goods, which could have a devastating impact on American businesses and consumers.
The tariffs have been a major point of contention between the US and China, with the two nations engaging in a trade war that has been ongoing for months. The situation has been further complicated by the COVID-19 pandemic, which has disrupted global supply chains and led to a significant decline in economic activity.
The sell-off in the US markets has also been driven by concerns about the pace of economic growth. While the US economy has been experiencing a strong recovery in recent months, many economists are worried that the tariffs could slow down the pace of growth and even push the country into a recession.
“The tariffs are a major risk to the economy,” said Michael Gapen, chief US economist at Barclays. “If they go ahead, it could have a significant impact on US businesses and consumers, and could even push the country into a recession.”
The bloodbath in the US markets has also had a significant impact on other asset classes. The price of gold, which is often seen as a safe-haven asset, surged to its highest level in several weeks, while the US dollar fell to a three-year low against a basket of other major currencies.
The turmoil in the US markets has also sent shockwaves through the global financial community. The Euro Stoxx 50 index, which tracks the performance of the top 50 companies in the Eurozone, fell 1.3% to 3,444.35. The FTSE 100 index in the UK also fell 1.2% to 7,443.50.
The bloodbath in the US markets is a stark reminder of the dangers of the global economy. The tariffs, coupled with the ongoing pandemic, have created a perfect storm of uncertainty and volatility, and investors are right to be worried.
As the situation continues to unfold, it will be important for investors to remain calm and focused. The tariffs may be a major risk to the economy, but they are not a reason to panic. By diversifying their portfolios and staying informed, investors can weather the storm and come out on top.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
