Samir Arora on stock market: 'Why this bear market is…' – Investor not worried about recent crash; here's whyhttps://t.co/5YOI1DRcxe
— ET NOW (@ETNOWlive) March 8, 2025
The stock market has experienced significant volatility in recent weeks, with the Nasdaq entering correction territory and the S&P 500 sinking to its lowest level since November. Investors are grappling with uncertainty surrounding President Donald Trump’s tariff policies and their potential impact on the global economy. On Thursday, the Dow Jones Industrial Average fell 1%, shedding over 400 points, while the S&P 500 dropped nearly 2%.
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— ET NOW (@ETNOWlive) March 8, 2025
The tech-heavy Nasdaq Composite plummeted more than 2.6%, officially entering correction territory as it is now more than 10% off its December record high. The market’s downturn comes amid persistent trade-war uncertainty, as investors gauge the potential impacts of President Donald Trump’s tariff policies. Trump announced a pause on tariffs for certain Mexican and Canadian goods, easing some immediate concerns but leaving broader questions about future trade relations unanswered.
Some are wondering why we haven't had more of a bounce in US equities after the partial rollback of tariffs on Canada and Mexico.
I suspect part of the answer lies in the extent to which companies and households value the predictability and clarity of policies.
As one CEO put it…— Mohamed A. El-Erian (@elerianm) March 7, 2025
Technology stocks continued to lead the market retreat, with Marvell Technology expecting a bigger AI payoff than realized, resulting in a near 19% drop in its shares. Other chipmakers, including Nvidia, Broadcom, and AMD, also experienced losses. Investors maintained a cautious stance following the release of weekly jobless claims data.
Stocks fall amid trade uncertainties
Initial claims dropped to 221,000, down from last week and below economist expectations. However, there remains concern about the overall health of the U.S. economy, especially with the looming jobs report set for release on Friday morning.
Broadcom shares rallied roughly 10% in post-market trading after posting better-than-expected financial results for the prior quarter and forecasting stronger than expected sales for the current quarter. Gap Inc. also defied the trend of disappointing retailer earnings by beating profit estimates.
Tesla stock fell 6% after Baird cut its price target, citing CEO Elon Musk’s increased involvement in government roles. Analysts, including Citi’s head of U.S. equity trading strategy Stuart Kaiser, underscore the significance of the upcoming jobs report. Kaiser indicated that a weaker-than-expected jobs number could trigger a significant market pullback, particularly if unemployment rates show an uptick.
As ongoing trade tensions and fears of faltering economic growth continue to exert pressure on the markets, investors should brace for more volatility in the days and weeks ahead.
