The US stock market closed out its worst quarter since 2022 on Monday as trade tensions escalated under President Donald Trump’s administration. The president has announced plans for sweeping tariffs, dubbed “Liberation Day” for the US economy, which have sent investors into a tailspin.
Analysts warn that markets loathe uncertainty and are bracing for further volatility. While some stocks in the auto sector may benefit from the new tariffs, others will likely suffer as imports become more expensive.
The Dow Jones Industrial Average has fallen 1% since the start of the year, while the tech-heavy Nasdaq composite index is down 10.4%. The S&P 500 index has seen steady declines over the past three months, with a loss of 4.6%.
Industry experts predict that individual deals and specific tariffs will be introduced gradually, but the current uncertainty will continue to drive volatility in the market.
As investors wait for clarity on the administration’s trade policies, sectors like discretionary goods have suffered the worst, with stocks linked to consumer spending falling almost 20% in March alone. Rising uncertainty has also tanked consumer confidence and fueled caution from companies and shoppers.
The big tech stocks that drove the Nasdaq index higher last year are now dragging it lower, as investors worry about inflation stemming from the tariff hit and its impact on interest rates.
Source: https://www.washingtonpost.com/business/2025/03/31/trump-tariffs-stock-market-downturn