Bloodbath in US Markets: S&P 500 and Nasdaq at Over 6-Month Lows
The US stock market has witnessed a catastrophic drop on Monday, with the S&P 500 and Nasdaq indexes plummeting to their lowest levels in over six months. The indices fell sharply amid widespread selling pressure, fueled by concerns over US President Donald Trump’s impending announcement of tariffs plans.
As of 09:44 am (US time), the S&P 500 was down 81.90 points, or 1.47%, to 5,499.04. The Nasdaq, which is heavily weighted with technology stocks, was down 409.48 points, or 2.36%, to 16,913.52. The selling pressure was so intense that it wiped out all the gains made by the S&P 500 in the past month, leaving investors scrambling to make sense of the sudden market downturn.
The massive selloff was triggered by widespread concerns over President Trump’s upcoming announcement of tariffs plans. The tariffs are expected to be imposed on imported goods, which could lead to a trade war with other countries. This has raised fears of a global recession, as tariffs could disrupt global supply chains and lead to a decline in international trade.
The sharp decline in the S&P 500 and Nasdaq indexes was also fueled by weak economic data from the United States. The Institute for Supply Management (ISM) reported that its manufacturing index fell to 52.8 in March, down from 54.2 in February. This decline suggests that the US manufacturing sector is slowing down, which could have a negative impact on the overall economy.
The weak economic data and the uncertainty surrounding the tariffs announcement have sent investors running for cover. The yield on the 10-year US Treasury note fell to 1.77%, its lowest level since January 2018. This decline in yields suggests that investors are seeking safe-haven assets, such as bonds, amid the market turmoil.
The Dow Jones Industrial Average, which is also a widely followed index, was down 574.63 points, or 1.93%, to 24,444.57. The Russell 2000 index of small-cap stocks was down 34.24 points, or 2.24%, to 1,433.44.
The sharp decline in the US stock market has also had a negative impact on the global markets. The Stoxx Europe 600 index was down 1.4% to 376.33, while the Nikkei 225 index in Japan was down 1.1% to 21,444.21.
The market correction has been fueled by a combination of factors, including the uncertainty surrounding the tariffs announcement, the weak economic data, and the decline in global trade. The S&P 500 and Nasdaq indexes have been trading in a narrow range for several months, and the recent decline has led to a sharp correction.
In conclusion, the recent decline in the S&P 500 and Nasdaq indexes is a clear indication of the uncertainty and volatility in the global markets. The tariffs announcement and the weak economic data have sent investors running for cover, and it remains to be seen how the market will react once the tariffs are implemented.
Source:
https://www.reuters.com/markets/us/futures-tumble-tariffs-fuel-recession-worries-2025-03-31/
