The U.S. stock markets experienced a volatile session on Monday, with the S&P 500 managing to recover from earlier losses to close higher. Investors remained on edge as they anticipated President Donald Trump’s upcoming tariff announcements, which are expected to target all trading partners.
President Trump’s rhetoric over the weekend heightened concerns about the potential economic impact of the tariffs. His plan for “reciprocal tariffs,” set to be unveiled on Wednesday, has fueled fears of a global trade slowdown and even a possible recession. Economists have already lowered their first-quarter growth forecasts to 0.3%, a significant drop from the 2.3% growth recorded in the previous quarter.
S&P 500 Rebounds After 1.65% Intraday Drop
The S&P 500 rose 0.55% to close at 5,611.85, rebounding from a 1.65% intraday drop that had pushed the index to its lowest level in six months. Despite the recovery, the index remains nearly 9% below its February record. The Nasdaq Composite dipped 0.14% to 17,299.29, while the Dow Jones Industrial Average gained 1%, adding 417.86 points to settle at 42,001.76.
Tech stocks continued to face challenges, with Nvidia and Tesla declining 1.2% and 1.7%, respectively. Nvidia, a key player in the artificial intelligence sector, is now nearly 30% off its 52-week high. Meanwhile, defensive stocks like Coca-Cola and Walmart saw gains as investors sought safer options amid market uncertainty.
Monday’s session marked the end of a turbulent month and quarter for Wall Street. The S&P 500 fell 5.8% in March, its worst monthly performance since December 2022, while the Nasdaq and Dow lost 8.2% and 4.2%, respectively. For the quarter, the S&P 500 declined 4.6%, snapping a five-quarter winning streak. The Nasdaq’s 10.4% quarterly drop was its largest since a 22.4% plunge in Q2 2022, and the Dow shed 1.3% over the same period.
As markets brace for further developments, the focus remains on the potential economic repercussions of the tariff plans and the upcoming jobs report, which could provide critical insights into the state of the U.S. economy. Investors are navigating a landscape marked by heightened volatility and uncertainty, with many adopting a cautious approach in the face of these challenges.
Read: US Markets Rocked by Tariff Fears, Tech Sector Takes a Hit
