S&P 500 Slides Into Correction as Treasuries Climb: Markets Wrap
tRUMP & Muskrat continue to crash the markets.
Bloomberg reports:
“It was only three weeks ago that exuberance over Donald Trump’s blueprint for the economy had vaulted US stocks to a record high. Today, with concern mounting over the goals and impact of his trade war, the S&P 500 tumbled into its first 10% correction in almost two years.
Volatility surged anew across asset classes Thursday, extending a retreat from risk that has lopped $5 trillion from the US equity benchmark and shows signs of seeping into high-yield bonds. New salvos in President Trump’s tariff offensive spurred another race for havens in the Treasury market.
The S&P 500 — perched at a record as recently as Feb. 19 — slid to a six-month low. This year’s selloff in megacaps deepened, amplifying the moves. And speculative corners on Wall Street from unprofitable tech to the most-shorted shares and crypto got crushed. An $8 billion exchange-traded fund tracking junk bonds saw one of its biggest losses in 2025, bucking the rise in Treasuries.
In another sign of a trade-war escalation, Trump threatened to enact a 200% tariff on European wine, champagne and other alcoholic beverages. Later Thursday, Trump said he would not repeal tariffs on steel and aluminum that took effect this week, nor back off plans for sweeping reciprocal tariffs on global trading parters set to start as soon as April 2.
“In only a few weeks, the broader market has gone from record highs to correction territory,” said Adam Turnquist at LPL Financial. “Tariff uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns.”
The S&P 500 fell 1.4%. The Nasdaq 100 slid 1.9%. The Dow Jones Industrial Average dropped 1.3%. A gauge of tech megacaps lost 2.5%. Adobe Inc. sank on a disappointing outlook, while Intel Corp. surged after naming an industry veteran as its next chief.
The yield on 10-year Treasuries fell five basis points to 4.27%. A $22 billion US sale of 30-year bonds was weak. The dollar rose 0.1%.
Trump used markets as a litmus test for the success of his first administration, and relished in the gains posted after his victory in November.
But the stark shift from economic optimism is creating an unsettling reality for traders trying to figure out where America’s markets go from here. One major question: At a time when it’s easier than ever for people to see fluctuations in their day-to-day net worth, can a stock rout take the US economy down with it?
“After the election, we framed the likely impact of economic policies from Donald Trump’s second presidential administration as a mix of vegetables and dessert,” said Libby Cantrill and Allison Boxer at Pacific Investment Management Co. “Some policies could leave a bitter taste for the economy and markets – i.e., the vegetables – while others would support growth, the so-called dessert.”
“The net economic impact of the Trump administration’s second term will likely depend on the sequencing, scope, and mix of all of these policies, with risks to both the upside and downside,” they added.
“Clearly this is going to be a much more volatile year and it remains to be seen if all of the revolutionary changes to the economy and trans-Atlantic alliances will lead to a recession or if it will lead to higher growth rates in the future,” said Chris Zaccarelli at Northlight Asset Management. “In the meantime, a more cautious and risk-off posture is warranted.”
“Clearly this is going to be a much more volatile year and it remains to be seen if all of the revolutionary changes to the economy and trans-Atlantic alliances will lead to a recession or if it will lead to higher growth rates in the future,” said Chris Zaccarelli at Northlight Asset Management. “In the meantime, a more cautious and risk-off posture is warranted.””
Bloomberg reports:
“It was only three weeks ago that exuberance over Donald Trump’s blueprint for the economy had vaulted US stocks to a record high. Today, with concern mounting over the goals and impact of his trade war, the S&P 500 tumbled into its first 10% correction in almost two years.
Volatility surged anew across asset classes Thursday, extending a retreat from risk that has lopped $5 trillion from the US equity benchmark and shows signs of seeping into high-yield bonds. New salvos in President Trump’s tariff offensive spurred another race for havens in the Treasury market.
The S&P 500 — perched at a record as recently as Feb. 19 — slid to a six-month low. This year’s selloff in megacaps deepened, amplifying the moves. And speculative corners on Wall Street from unprofitable tech to the most-shorted shares and crypto got crushed. An $8 billion exchange-traded fund tracking junk bonds saw one of its biggest losses in 2025, bucking the rise in Treasuries.
In another sign of a trade-war escalation, Trump threatened to enact a 200% tariff on European wine, champagne and other alcoholic beverages. Later Thursday, Trump said he would not repeal tariffs on steel and aluminum that took effect this week, nor back off plans for sweeping reciprocal tariffs on global trading parters set to start as soon as April 2.
“In only a few weeks, the broader market has gone from record highs to correction territory,” said Adam Turnquist at LPL Financial. “Tariff uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns.”
The S&P 500 fell 1.4%. The Nasdaq 100 slid 1.9%. The Dow Jones Industrial Average dropped 1.3%. A gauge of tech megacaps lost 2.5%. Adobe Inc. sank on a disappointing outlook, while Intel Corp. surged after naming an industry veteran as its next chief.
The yield on 10-year Treasuries fell five basis points to 4.27%. A $22 billion US sale of 30-year bonds was weak. The dollar rose 0.1%.
Trump used markets as a litmus test for the success of his first administration, and relished in the gains posted after his victory in November.
But the stark shift from economic optimism is creating an unsettling reality for traders trying to figure out where America’s markets go from here. One major question: At a time when it’s easier than ever for people to see fluctuations in their day-to-day net worth, can a stock rout take the US economy down with it?
“After the election, we framed the likely impact of economic policies from Donald Trump’s second presidential administration as a mix of vegetables and dessert,” said Libby Cantrill and Allison Boxer at Pacific Investment Management Co. “Some policies could leave a bitter taste for the economy and markets – i.e., the vegetables – while others would support growth, the so-called dessert.”
“The net economic impact of the Trump administration’s second term will likely depend on the sequencing, scope, and mix of all of these policies, with risks to both the upside and downside,” they added.
“Clearly this is going to be a much more volatile year and it remains to be seen if all of the revolutionary changes to the economy and trans-Atlantic alliances will lead to a recession or if it will lead to higher growth rates in the future,” said Chris Zaccarelli at Northlight Asset Management. “In the meantime, a more cautious and risk-off posture is warranted.”
“Clearly this is going to be a much more volatile year and it remains to be seen if all of the revolutionary changes to the economy and trans-Atlantic alliances will lead to a recession or if it will lead to higher growth rates in the future,” said Chris Zaccarelli at Northlight Asset Management. “In the meantime, a more cautious and risk-off posture is warranted.””
