Stocks faced serious pressure on Monday, March 10, 2025, as the sell-off intensified and Wall Street grappled with growing concerns about the economic strategies of President Donald Trump. The S&P 500 recorded its largest decline since 2022, dropping 2.7% and nearing 9% below its record high reached just one month prior. The day saw the S&P sink to the point where it fell as much as 3.6% at one moment, raising alarms across the financial sector.
The Dow Jones Industrial Average suffered similarly, plummeting 890 points, or 2.1%, after initially falling over 1,100 points. The Nasdaq composite was not spared, skidding down by 4%, leading to one of its worst performances since 2020. Such drops are reflective of market instability dominated by fears of tariffs and their potential fallout on the economy.
Market analysts note the turbulence is largely attributed to Trump’s fluctuatory trade policies, which have resulted in significant volatility, with the S&P moving more than 1% seven times within eight trading sessions. The Federal Reserve Bank of Atlanta pointed out alarming signs, indicating the U.S. economy might already be experiencing contraction.
During the weekend prior, Trump remarked during an interview with Fox News Channel on the pressing economic climate, stating, "I hate to predict things like [a recession] but there is going to be some transition because what we’re doing is very big. We’re bringing wealth back to America, and it takes time.” This sentiment echoes his administration's intention to revive manufacturing jobs through tariffs—an approach some economists deem risky.
Economist David Mericle from Goldman Sachs has also revised growth projections, reducing the expected rate to 1.7% from 2.2% by the end of 2025. Mericle even warned of the increased likelihood of recession, now placing it at 20% over the next year. He noted, "The White House has the option to pull back policy changes if the risks to the economy begin to look more serious."
With Trump meeting behind closed doors with tech industry heads on the same day, the economic shockwaves barely abated. Major tech firms such as Nvidia and Tesla were particularly hit hard. Nvidia dipped 5.1%, marking over 20% losses for the year, cooling off from its remarkable almost 820% surge just prior. Meanwhile, Tesla faced even steeper losses, falling 15.4% and cumulatively losing 45% of its value this year. This data paints a concerning picture for companies deeply intertwined with Trump’s political strategies.
The broader stock market sentiment was darkened not just by tech giants but also by consumer-facing companies, with notable declines for Carnival—down 7.6%—and United Airlines, which dropped by 6.3%. The overall mood reflected investors’ hesitancy, as consumer spending, pivotal for economic growth, appeared shaky.
Cryptocurrencies were not immune to the downturn, with Bitcoin's price declining below $80,000 from over $106,000 as recently as December. Meanwhile, U.S. Treasury bonds saw price increases, indicative of investors seeking safer havens amid economic uncertainty. The yield on the 10-year Treasury fell down to 4.22% from 4.32%, reflecting similar patterns noted since January when yields approached 4.80%.
Dealmaking on Wall Street, albeit paradoxical, continued to show some signs of strength. Notably, Redfin's stock skyrocketed by 67.9% after Rocket Mortgage announced it would acquire the digital real estate company, which was valued at $1.75 billion. Conversely, Rocket's stock took a hit, falling by 15.3%. ServiceNow also faced challenges as it reported plans to acquire AI assistant maker Moveworks for $2.85 billion, leading to its own decline of 7.9%.
Overall, by the day's end on March 10, 2025, the S&P 500 closed 155.64 points lower, settling at 5,614.56. The Dow Jones finished down by 890.01 points to 41,911.71, with the Nasdaq composite ending at 17,468.32 following a drop of 727.90 points. Global reactions mirrored this panic, with Asian markets witnessing declines—1.8% lower in Hong Kong and down 0.2% in Shanghai after China reported its first consumer price drop in over 13 months.
With the market continuing to navigate tumultuous waters, analysts remain on high alert as they gauge the potential repercussions of the prevailing economic strategies framed by the Trump administration, especially considering the possible escalation of tariffs and rising concerns over the U.S. economic outlook.
"We are not there yet, but things can change quickly," Wilson commented, referencing market volatility and its potential impacts on broader economic stability.