Traders on the New York Stock Exchange started the week on a tense note as stocks took a sharp decline on Monday. The S&P 500 fell over 1%, sliding back into correction territory amidst increasing concerns over President Donald Trump’s tariff strategy. The Nasdaq Composite took a harder hit, dropping 1.7%, while the Dow Jones Industrial Average slipped by 146 points, or 0.3%. Major tech stocks such as Nvidia and Meta Platforms led the downturn, losing 4.3% and 2.6% respectively. Tesla also stumbled, falling 5.3%. The tech sector, which had seen a meteoric rise last year fueled by artificial intelligence optimism, continues to face challenges. Nvidia, once a poster child for AI enthusiasm, is now 31% below its 52-week high. Meanwhile, the broader market index is over 10% off its February peak and hit its lowest point since September.
This decline in confidence follows the impending implementation of a new wave of tariffs announced by the Trump administration to take effect on Wednesday, termed “Liberation Day” by the president. A notable measure is a 25% tariff on foreign automobiles not manufactured in the U.S. Trump is also expected to unveil a plan for reciprocal duties targeting countries that have tariffs on U.S. imports, adding to the uncertainty. Over the weekend, Trump’s remarks did little to calm market fears. As reported by The Wall Street Journal, he urged advisors to adopt a more aggressive stance on tariffs. In a Saturday conversation with NBC News, Trump expressed indifference to potential price hikes by foreign automakers as a result of these tariffs.
The downturn serves as a stark contrast to what was briefly a promising recovery in March when the S&P 500 managed to climb out of correction territory. However, the sell-off that began in February has regained strength as the date for reciprocal duties, set for April 2, looms closer. Alongside the car import tariff last week, Trump announced that these tariffs would remain for his entire second term. On Sunday, he further unsetiled investors with claims that the reciprocal tariffs would target all countries, not just those with significant trade deficits with the U.S.
Worries surrounding U.S. trade policies are starting to take a toll on the economic outlook. The latest CNBC Rapid Update survey suggests a meager 0.3% economic expansion for the first quarter, a stark drop from the 2.3% growth in the last quarter. This uncertainty is likely to lead American businesses to adopt a cautious “wait and see” approach. Increased tariffs are now considered likely, pushing down growth projections while driving inflation forecasts higher for 2025.
Monday’s trading closed a turbulent month and quarter for Wall Street, with the S&P 500 down over 7% for March, marking its steepest monthly fall since September 2022. For the quarter, the index dipped 6.3%, ending a five-quarter streak of gains. The Nasdaq plunged 12.3% this quarter, the largest quarterly drop since its 22.4% collapse in Q2 2022, while the Dow fell 2.9% over the same period. As investors navigate these challenging waters, the volatile start to this year is raising concerns over how U.S. trade policies might reshape the market landscape.
Original Source: https://www.cnbc.com/2025/03/30/stock-market-today-live-updates.html
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Publish Date: 2025-03-31 19:53:00
