Experts have noted that although the S&P 500 hasn't officially entered a correction, many stocks within the index have already done so. Ongoing fluctuations in the market are anticipated as Trump's policy decisions unfold.
The index has risen sharply several times lately, but it has quickly fallen back down afterward.
On Monday, Wall Street ended the day with significant losses, mainly due to declines in technology and consumer discretionary stocks.
On Monday, the stock market decline intensified, with the Nasdaq Composite experiencing its worst day since 2022. The Roundhill Magnificent Seven ETF, which contains the seven largest tech companies, fell over 20% from its December peak, entering bear market territory. Investors on Wall Street moved away from risky stocks towards safer options due to President Donald Trump's continued unpredictable approach to tariffs, creating uncertainty in the markets and prompting a demand for lower earnings multiples from major tech firms.
Concerns about tariff policies have unsettled the markets, leading to the highest level of volatility seen this year.
According to Charlie McElligott, a strategist at Nomura Securities, the recent decline in the S&P 500 is not expected to cause a major market crash. He thinks that investors are already taking steps to lower their risk in a careful way.
A research firm has created a checklist to assist stock investors in determining the right time to return and make purchases.
In the upcoming episode of Market Domination Overtime, hosts Julie Hyman and Josh Lipton will discuss important economic data and events scheduled for Friday, March 7. The US Bureau of Labor Statistics will release its monthly jobs report for February, and Federal Reserve officials, including Chairman Jerome Powell, will share their views on the economy. Additionally, President Trump will hold the first-ever crypto summit at the White House on Friday.
Volatility has returned due to concerns about the trade war and a slowing U.S. economy. Investors might take advantage of this situation by exploring ETF and ETN options that are currently available.
On Thursday, Wall Street ended significantly lower, mainly due to declines in technology and consumer discretionary stocks.