S&P, Nasdaq log worst quarterly slumps in years as Trump tariff fears rattle markets
The S&P 500 and Nasdaq Composite just closed their worst quarter in years, hammered by investor anxiety over President Donald Trump’s escalating tariff agenda. The S&P 500 dropped 4.6%, its steepest quarterly loss since Q3 2022, while the Nasdaq plummeted 10.5%, its worst showing since Q2 2022, a Reuters report said.
The downturn capped a bruising March for equities, marking their biggest monthly drop since December 2022.
“Investors, more or less in this first quarter, threw their hands in the air, as you really cannot trade around this,” said Adam Turnquist, chief technical strategist at LPL Financial.
Big tech falters as ‘Magnificent Seven’ selloff deepens
Once market darlings, tech giants led the retreat. Tesla plunged nearly 36% in Q1, and Nvidia dropped close to 20%. The pullback in growth stocks dragged the Nasdaq lower and weighed on S&P 500 performance.
“Our big lesson from the first quarter is diversification is not dead,” said Michael Reynolds, vice president of investment strategy at Glenmede. “If you avoided the perils of market concentration, you actually held up quite a bit better versus some of the headline indexes.”
Despite losses in tech-heavy sectors, more than half of the S&P 500’s 11 sectors posted gains. Energy outperformed with a 9.3% rise, while consumer staples rose 1.6% on Monday alone, bolstered by its reputation as a defensive play.
Monday market snapshot: A mixed close
Markets showed some resilience on Monday, with the S&P 500 climbing 0.55% to 5,611.85 and the Dow Jones Industrial Average rising 1% to 42,001.76. The Nasdaq slipped 0.14% to 17,299.29 as Big Tech losses outweighed gains elsewhere.
Financials led gains, as shares of Discover Financial Services and Capital One Financial rose 7.5% and 3.3%, respectively, on optimism around their proposed merger.
Tariff uncertainty looms over Wall Street
Markets are on edge ahead of Trump’s anticipated Wednesday announcement of sweeping new tariffs, dubbed “Liberation Day” by the president. The administration has hinted at tariffs on all nations, compounding fears of inflation and slowing growth.
Goldman Sachs responded by upping its recession odds to 35%, downshifting its S&P 500 year-end target to 5,700, and predicting more rate cuts from the Federal Reserve.
The CBOE Volatility Index jumped to 22.28, a two-week high, as traders brace for Wednesday’s tariff announcement.
Global markets sway; gold hits all-time high
US stock swings echoed around the world, with Japan’s Nikkei 225 falling 4% and France’s CAC 40 down 1.6%. Meanwhile, investors sought safety in gold, sending spot prices to a record $3,122.80 per troy ounce — up 19% since January.
Gold futures also surged, nearing $3,157.40 per ounce, fueled by escalating trade tensions and economic uncertainty.
Interest in gold, often seen as a safe haven, is surging. “The people who typically profit from precious metals are the sellers,” the Commodity Futures Trade Commission warned, noting the potential risks of volatile pricing and fraud.
What’s next: Economic data and Fed speeches
Investors are also eyeing upcoming economic reports — including ISM surveys and Friday’s non-farm payrolls — as well as speeches from Fed Chair Jerome Powell and other officials.
With Trump’s trade policy driving fear and volatility, markets are poised for more turbulence. Whether Wednesday’s announcement clarifies direction or deepens uncertainty remains to be seen.
(With inputs from agencies)
