| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41911.71 | -890.01 | -2.08% |
| S&P 500 | 5614.56 | -155.64 | -2.70% |
| Nasdaq | 17468.32 | -727.9 | -4.00% |
| VIX | 27.86 | 4.49 | 19.21% |
| Gold | 2889.1 | -10.3 | -0.36% |
| Oil | 65.74 | -0.29 | -0.44% |
US MARKET
The selloff in US equities accelerated Monday, with major averages tumbling to their worst day this year, as investors braced for a slowdown in the American economy. The tech-heavy Nasdaq 100 Index plunged 3.8% for its worst day since October 2022. The S&P 500 Index sank 2.7%, teetering closer to a correction after sliding 8.6% from its Feb. 19 peak. The Mag 7 is now officially in a bear market, down more than 20% since the record high on December 17th. Megacap tech companies in the S&P 500 sank 5.4%. Tesla Inc. plunged 15%. It’s down circa 50% since its post Trump election rally.
Strategists and economists across Wall Street have also been raising their odds for a US economic recession due to Trump tariffs and government cost cutting. And that’s setting up the US stock market for what could be a prolonged bout of turbulence. Further tariff announcements are expected at the beginning of April.
The broader index S&P500 closed below its 200-day moving average for the first time since November 2023, snapping a streak of 336 sessions above the closely watched threshhold. And bad things happen below the 200-day moving average. Its fall of 5% from its high in just nine sessions was the swiftest decline of that magnitude since February 2020, as the pandemic was starting to kick in.
Hedge funds have been unwinding their positions aggressively, with the long-short stock ratio falling to the lowest since 2019, according to Goldman Sachs Group Inc.’s prime brokerage report for the week ended on March 7. And more bears have emerged on Wall Street, with Morgan Stanley’s Michael Wilson the latest to sound the alarm on economic growth worries.
As we noted in our latest Weekly, Trump has a sequencing of expected economic policy plans, notably tariffs, corporate tax cuts and deregulation. At the moment, it is all the negative impacts of the tariffs.
LOCAL MARKET
The S&P/ASX 200 Index climbed 0.18% to close at 7,962 on Monday, recovering some losses from the previous session, as mining and energy stocks led gains amid firmer commodity prices. The rally also mirrored Wall Street’s Friday rebound, as global markets stabilized despite lingering concerns over the US economy and President Donald Trump’s evolving tariff policies.
Resource stocks were among the top performers, with BHP Group (+0.6%), Woodside Energy (+1.9%), Pilbara Minerals (+1.1%), Mineral Resources (+3.3%), and Santos (+1.3%) posting solid gains. Technology stocks also rebounded, following a strong lead from their US counterparts, with Droneshield (+11.4%), Computershare (+1.3%), and Nuix Ltd (+6%) seeing notable advances. Meanwhile, consumer stocks mostly declined, while financial stocks traded mixed, reflecting broader market uncertainty.
Australian shares are poised to hit a seven-month low to start Tuesday, following heavy losses in New York as recession worries hit growth stocks. ASX 200 futures were down 70 points, or by 0.9%, predicting the index would dip below 7900 for the first time since August. Futures pared earlier losses, as did US equities.