Unlock stock picks and a broker-level newsfeed that powers Wall Street.
2 min read
In This Article:
US stocks tumbled on Monday, resuming their recent sell-off as trade-war worries mounted in the run-up to President Trump’s tariff bonanza later in the week.
The tech-heavy Nasdaq Composite (^IXIC) led the declines, down roughly 1.7% to touch a six-month low, while the S&P 500 (^GSPC) sank to its lowest level since September. At last check, the broad-based index was down than 1.1%. The Dow Jones Industrial Average (^DJI) dropped 0.4%.
Some of the biggest-name megacaps looked set for a bruising. Nvidia (NVDA) was down about 5% in early trading, while Tesla (TSLA) lost over 5%. Meta (META) and Amazon (AMZN) also declined.
Markets are set to wrap up March on a woeful note, after a rough month and quarter beset by Trump’s fast-evolving tariff policy. Last week was the fifth in six weeks that the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) ended the week in the red.
Stocks have sold off amid concerns about the economic impact of Trump’s trade offensive, as uncertainty about its scope dampens market appetite for risk. Investors are now bracing for the broadest set yet of US tariffs, set to be unveiled on April 2 — described as “Liberation Day” by the president.
Trump said he plans to target “all countries” with reciprocal tariffs from the start, dampening hopes for a more limited push. A report from The Washington Post this weekend suggested the president is pushing advisers to go even “bigger” in imposing the levies.
Gold (GC=F), on the other hand, surged to a record high, topping $3,100 for the first time, as investors sought security in less risky assets than stocks. The precious metal was changing hands around $3,147 an ounce.
Meanwhile, markets are still keeping watch for signs of economic stress, after stocks fell in the wake of a hotter-than-expected read on “core” PCE — the Federal Reserve’s preferred measure of inflation. The March jobs report due on Friday is the data highlight of the week, with updates on private payrolls and job openings also on the docket.
LIVE 11 updates
-
Gold reaches new highs, on pace for its best quartelry performance in nearly 40 years
Gold futures (GC=F) pared gains after rising to a fresh record on Monday as growing fears of an escalating trade war prompted investors to flock to the safe-haven asset.
Futures traded at around $3,133 an ounce, easing back somewhat after surpassing $3,150 earlier as stocks faltered. But the yellow metal is still up more than 18% for the first quarter, on pace for its best year-to-date performance since 1986.
Meanwhile, spot gold touched more than $3,127 an ounce ahead of reciprocal tariffs expected to be announced by the Trump administration on Wednesday.
Data suggesting sticky inflation released last week has supported higher gold prices, while the S&P 500 and Nasdaq have plummeted.
Wall Street analysts have been upping their price target on the precious metal. Goldman Sachs now forecasts a year-end target of $3,300 per troy ounce, “reflecting upside surprises in ETF inflows and in continued strong central bank gold demand.”
Bank of America predicts the precious metal will reach $3,500 per ounce over the coming 18 months under the assumption that investments will increase 10% through more buying from China and central banks, along with investors purchasing physically backed ETFs.
-
Tech leads stocks lower as investors await next wave of Trump tariffs
Stocks fell sharply at the open on Monday as the broad US reciprocal tariffs expected later this week stoked concerns about risks of sticky inflation and an escalating trade war.
Tech stocks led the declines, with the Nasdaq Composite (^IXIC) falling 1.6%. The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) meanwhile fell about 1% and 0.7%, respectively.
Nvidia (NVDA) led the tech sector lower in early trading after Trump said he won’t be granting any countr softer treatment when the US introduces like-for-like tariffs.
-
Nvidia stock drops as tech leads markets lower after Trump backs broader reciprocal tariffs
Yahoo Finance’s Laura Bratton reports:
Read more here:
-
Premarket movers: Tech stocks extend losses, Moderna tanks
US tech stocks are extending Friday’s heavy losses in premarket trading today. Here’s a look at how trending tickers on the Yahoo Finance platform are faring:
In other tech names, Palantir (PLTR) sank about 7% while Robinhood (HOOD) fell over 6% in sympathy with other crypto-related stocks.
Moderna (MRNA) stock also incurred heavy premarket losses on Monday, dropping more than 10% after the FDA ousted Dr. Peter Marks, its top vaccine official. The stock has been under pressure as reports circulate that the Department of Health and Human Services is considering pulling its funding to develop a bird flu vaccine.
-
US Treasurys surge as tariff countdown spurs risk-asset exodus
US Treasurys surged as global markets grew uneasy ahead of President Trump’s anticipated trade tariff announcements this week.
Bloomberg News reports:
-
Goldman’s Kostin slashes his S&P 500 target again as tariffs loom
Goldman Sachs’s chief economist David Kostin has lowered his year-end target for the S&P 500 (^GSPC) target for the second time in March, joining other Wall Street forecasters in raising the alarm over tariffs.
Bloomberg reports:
-
Tesla stock slides as headwinds build, techs falter
Tesla (TSLA) shares dropped 4%, signaling building losses for the EV maker as techs led stocks on Wall Street lower ahead of the bell.
But the stock faced headwinds of its own after a “Tesla Takedown” weekend of public protests against the company and its CEO Elon Musk.
Musk himself has acknowledged the impact of his leadership of the DOGE effort to cut federal spending on his role at Tesla.
“It’s costing me a lot to be in this job,” Musk said at a town hall event in Wisconsin, per Bloomberg. “What they’re trying to do is put massive pressure on me — and Tesla I guess — to you know — I don’t know — stop doing this,” he said.
The stock has fallen almost 35% this year so far amid rising competition from car makers in China and Europe, and as once-loyal Tesla owners trade in their models at record levels.
Investors are now bracing for a drop in Tesla’s Q1 deliveries when updated numbers arrive on Wednesday, thanks in part to the backlash.
Reuters reports:
-
Good morning. Here’s what’s happening today.
-
Japan’s Nikkei 225 sinks into correction as tariff fears build
Japanese stocks got a bruising on Monday amid growing nervousness about Trump’s big tariff announcement.
The Nikkei 225 (^N225) index in Tokyo led the Asia sell-off, which was reflected in Europe and the US premarket as investors fled riskier assets.
Bloomberg reports:
-
It’s looking like a week…
Overseas markets are being blasted by Trump tariff worries today. Momentum names such as Nvidia (NVDA) and Tesla (TSLA) are getting slammed premarket. And US markets are taking it on the chin in premarket trading.
It’s shaping up to be a week, as si would say.
To that end, Goldman’s chief US equity strategist David Kostin cut his three-month and 12-month return forecasts for the S&P 500 (^GSPC) by 5% and 6%, respectively. That would put the S&P 500 at 5,300 in three months, and 5,900 in 12 months.
“Slowing growth and rising uncertainty warrant a higher equity risk premium and lower valuation multiples for equities,” Kostin said.
The team at HSBC is out this morning with a warning that the sell-off in stocks is likely to persist.
Meanwhile, Kostin’s counterpart on the economics team at Goldman — Jan Hatzius — on Monday lifted his recession probability estimate to 35%, from 20% previously.
-
Gold surpasses $3,100 for the first time
Gold (GC=F) prices pushed above $3,100 for the first time on Monday, marking the third consecutive day the commodity has touched record highs. The price keeps pushing up as tariff worries and geopolitical tensions lead investors toward safe-haven assets.
Reuters reports:
