NEW YORK — The sell-off on U.S. stock markets deepened on March 10, 2025, as concerns over President Donald Trump’s economic policies led Wall Street to question how much pain the economy might endure due to tariffs and shifting policies. The S&P 500 dropped 2.7%, nearing 9% below its all-time high from just the previous month.
At one point on March 10, 2025, the S&P 500 was down 3.6%, potentially on track for its worst day since 2022. The Dow Jones Industrial Average tumbled 890 points, or 2.1%, after initially losing over 1,100 points, and the Nasdaq composite sank 4%. This sell-off marks the culmination of heightened volatility, as demonstrated by the S&P 500 swinging more than 1% up or down for seven of the last eight days due to uncertainties surrounding Trump’s fluctuational tariffs.
The underlying worry is dual: Wall Street must grapple with the fear of direct economic harm and the psychological impact of increased uncertainty driving both businesses and consumers toward stalling economic activity. Recent surveys signal weakening consumer confidence, and indicators from the Federal Reserve Bank of Atlanta point to the possibility of the U.S. economy already shrinking.
Over the weekend, Trump appeared on Fox News, responding to questions about the possibility of recession. He stated, “I hate to predict things like what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. It takes a little time.” His optimistic rhetoric follows efforts aimed at revitalizing manufacturing jobs and reducing governmental spending, yet ominous clouds linger on the horizon.
Economists are revising their growth forecasts based on recent data. For example, David Mericle of Goldman Sachs cut his estimate for U.S. economic growth to 1.7% from 2.2% for the end of 2025. He notes there is now a one-in-five chance of recession over the next year, citing the potential for the White House to retract policy changes if risks to the economy worsen.
Chris Larkin, managing director of trading at E-Trade from Morgan Stanley, remarked, “There are always multiple forces at work, but right now, almost all of them are taking a back seat to tariffs.” Meanwhile, on March 10, Trump met with CEOs from major tech firms, though details of the conversations were not disclosed. He maintained silence on the day’s harsh market outcomes.
Prominent tech stocks, particularly those riding the AI wave, have faced some of the most significant losses. Nvidia plunged another 5.1% on March 10, leading to a staggering decline of over 20% year-to-date, contrasting sharply with its previous surge of nearly 820% over 2023 and 2024. Tesla saw its stock drop 15.4%, worsening its total loss for the year to 45% as fears mount over its association with Trump.
Concerns are not just confined to tech giants, as broader consumer-facing companies also dropped sharply. Carnival Corporation's shares fell 7.6%, and United Airlines saw its stock decrease by 6.3%. The troubling sentiment has even spread to the cryptocurrency market, where Bitcoin’s value plummeted below $80,000, diminishing from over $106,000 just last December.
Meanwhile, investors shifted focus to U.S. Treasury bonds, propelling their prices upwards and thereby lowering yields. The yield on 10-year Treasuries dipped to 4.22% from 4.32% late on March 7, 2025, which marks another significant shift as market worries grow.
This period of uncertainty hasn’t halted all deal-making on Wall Street. Notably, Redfin's stock soared 67.9% following the announcement of Rocket's acquisition of the digital real estate brokerage for $1.75 billion. Conversely, Rocket's stock took a 15.3% hit on the same day. ServiceNow also dropped 7.9% after announcing its acquisition of AI-assistant maker Moveworks for $2.85 billion.
Summing up the day's events, the S&P 500 closed down 155.64 points at 5,614.56. Likewise, the Dow finished the day at 41,911.71, down 890.01 points, and the Nasdaq sank 727.90 points to close at 17,468.32.
Globally, the sentiment deepened as other markets reflected similar struggles. European indexes largely fell, following a mixed session across Asia. Stock indexes were down 1.8% in Hong Kong and declined by 0.2% in Shanghai after Chinese consumer prices dipped for the first time in 13 months.
Analysts continue to track these developments closely. Michael Currie, senior investment adviser at TD Wealth, mentioned, “It literally was changing not even day by day, but hour by hour,” underscoring the fluid and dynamic nature of market reactions to Trump’s policies. The current market conditions highlight growing fears over Trump’s trade decisions and the potential economic ramifications as both domestic and global markets react with uncertainty.