S&P 500 and Nasdaq Suffer Worst Quarterly Slumps in Years Due to Trump Tariff Fears

Market Turmoil and Uncertainty

The S&P 500 and Nasdaq Composite have just faced their worst quarterly losses in years, as investors grow increasingly worried about President Donald Trump’s escalating tariff plans. The S&P 500 dropped 4.6%, marking its steepest quarterly decline since Q3 2022, while the Nasdaq plunged 10.5%, its worst performance since Q2 2022.

Big Tech Struggles as ‘Magnificent Seven’ Selloff Deepens

• Former market favorites, tech giants led the retreat, with Tesla plummeting nearly 36% in Q1 and Nvidia dropping close to 20%.
• “Our big lesson from the first quarter is diversification is not dead,” said Michael Reynolds, vice president of investment strategy at Glenmede.

Monday Market Snapshot: A Mixed Close

• Markets showed some resilience on Monday, with the S&P 500 climbing 0.55% to 5,611.85 and the Dow Jones Industrial Average rising 1% to 42,001.76.
• Financials led gains, as shares of Discover Financial Services and Capital One Financial rose 7.5% and 3.3%, respectively, on optimism around their proposed merger.

Tariff Uncertainty Looms Over Wall Street

Markets are on edge ahead of Trump’s anticipated Wednesday announcement of sweeping new tariffs, referred to as “Liberation Day” by the president. The administration has hinted at tariffs on all nations, exacerbating fears of inflation and slowing growth.

Global Markets Sway; Gold Hits All-Time High

• US stock swings reverberated around the world, with Japan’s Nikkei 225 falling 4% and France’s CAC 40 down 1.6%.
• Investors sought safety in gold, sending spot prices to a record $3,122.80 per troy ounce — up 19% since January.

What’s Next: Economic Data and Fed Speeches

Investors are also focusing on upcoming economic reports — including ISM surveys and Friday’s non-farm payrolls — as well as speeches from Fed Chair Jerome Powell and other officials.

With Trump’s trade policy causing fear and volatility, markets are bracing for more turbulence. Whether Wednesday’s announcement will clarify the direction or deepen uncertainty remains to be seen.

(With inputs from agencies)