Market Overview

The S&P 500 recovered from early losses on Monday to close 0.5% higher after briefly dropping as much as 1.7%. The Dow Jones Industrial Average rose 418 points, or 1%, while the Nasdaq Composite slipped 0.14%. Earlier in the day, the S&P 500 traded 10% below its record high.

Despite Monday’s rebound, markets remain under pressure. The S&P 500 is down 6.3% in March, on track for its worst monthly performance since September 2022. The Nasdaq has lost 8% this month, while the Dow has declined 5%. For the quarter, the S&P 500 has dropped 5%, likely ending its five-quarter winning streak. The Nasdaq is down 10.9% for the quarter, marking its steepest decline since Q2 2022, while the Dow has shed 1.6%.

Global markets also saw a sell-off as investors braced for President Donald Trump’s upcoming tariff announcement, heightening concerns about a broader trade war amid signs of economic slowing. Equities worldwide tumbled, with investors shifting toward safer assets. Gold surged past $3,100 for the first time, while 10-year Treasury yields slid five basis points to 4.20%.

Goldman Sachs has lowered its S&P 500 year-end target to 5,700 from 6,200, citing increased recession risks and tariff-related uncertainty. Analysts warn that further declines are possible if economic growth and investor confidence deteriorate further.

Corporate News

Tech stocks continued to struggle, weighed down by the fading momentum of last year’s AI-driven rally. Nvidia fell 3%, now more than 30% below its 52-week high. Meta Platforms declined 1%, while Tesla lost 3%. Investors seeking safety shifted toward defensive stocks such as Coca-Cola and Walmart, which saw gains.

The dollar, typically a safe-haven asset, has not followed its usual pattern during sell-offs, dropping against most major currencies and heading for its worst start to a year since 2017.

Trump reaffirmed that his reciprocal tariff plans will target all countries starting April 2, dismissing speculation that the initial scope could be limited. Markets are closely watching whether these tariffs will be more or less restrictive than anticipated, as this will likely influence near-term market direction.