As we close a tumultuous month and quarter for global stock markets, the impact of the current tariff policies and recession fears continues to pressurize stock indexes. The S&P 500 and Nasdaq have faced their most challenging month since December 2022, showcasing a significant period of volatility.
Key Market Movements
- The Dow Jones Industrial Average and the leading S&P 500 both saw declines of over 1% early on Monday, while the tech-heavy Nasdaq fell by more than 2%. Although volatility persisted, the Dow and S&P 500 turned positive by the end of the day; however, the Nasdaq remained down.
- For March and Q1 2025, the Dow dropped 5% for the month and 2% for the quarter. The S&P 500 decreased 6% in March and 5% for the quarter. Nasdaq experienced an 8% and 10% loss, respectively.
- These declines mark the worst month for S&P 500 and Nasdaq since December 2022.
- Contributing to this downturn were statements from former President Trump regarding tariffs affecting all nations. Predictions from Goldman Sachs indicate potential inflation increases and recession risks due to these policies.
Sector Performances: Tesla And Nvidia At The Forefront
Heading sector losses, Tesla and Nvidia shares dropped 1% and 2% respectively, concluding the month and quarter on a downward note. Tesla’s shares fell 15% in March, totaling a 38% reduction in 2025. Similarly, Nvidia’s shares decreased by 16% during March, accumulating a 22% drop for the quarter.
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Significant Losses And Alternative Investments
The companies within the S&P 500 witnessed an approximate loss of $3 trillion in market valuation in March alone, comparable to the entire market cap of Apple.
Meanwhile, amidst the capital market’s instability, gold continued its upward trajectory, surpassing $3100 per ounce. Since the start of 2025, gold prices have increased nearly 20%.