'Volatility Grips US Stock Market Amid Trade Tensions and Economic Concerns'

On March 31, 2025, the US stock market experienced significant volatility, driven by several key factors. The Dow Jones Industrial Average tumbled by 1.7 percent, or 715.80 points, to close at 41,583.90. The S&P 500 dropped by 1.6 percent, while the Nasdaq Composite fell by 2.5 percent.The major indices were heavily influenced by the announcement of new tariffs by the Trump administration, set to go into effect on April 2. These tariffs, aimed at countries that charge levies on US exports, have heightened concerns about trade tensions and their potential impact on the US economy. Additionally, the market was reacting to a hotter-than-expected inflation reading and weak consumer sentiment data from the previous week, which reinforced fears about the economy's health.In terms of sector performance, technology stocks were particularly hard hit. Mega-cap technology companies such as Tesla, which fell by 7 percent, Nvidia down by 5 percent, and Broadcom declining by 4 percent, led the declines. Other notable tech stocks like Amazon, Meta Platforms, Apple, Microsoft, and Alphabet also lost ground. Chip stocks remained under pressure, with the iShares Semiconductor ETF dropping by 3 percent. Advanced Micro Devices, Marvell Technology, Micron Technology, and Arm Holdings each fell by more than 3 percent.Among the most actively traded stocks, Mr. Cooper saw a significant gain of 15 percent, while Rocket Companies dropped by 10 percent. Crypto-related stocks also suffered, with Strategy (formerly MicroStrategy) and Coinbase Global each declining by about 5 percent.Looking forward, pre-market futures indicated a mixed start for the next trading day, with Dow Jones futures down by 0.7 percent, S&P 500 futures off by 1.1 percent, and Nasdaq 100 futures dropping by 1.5 percent. Key events to watch include the implementation of the new tariffs and any updates on the economic front. Important upcoming earnings releases and further economic data, such as inflation readings, will also be crucial in shaping market direction.The yield on the 10-year Treasury note, which affects borrowing costs, was at 4.20 percent, down from 4.26 percent at the previous close, reflecting increased concerns about the economy. Overall, the market remains cautious due to the ongoing trade tensions and economic uncertainties.This content was created in partnership and with the help of Artificial Intelligence AI