Equity Meltdown Fuels Worst Nasdaq Day Since 2022 – US Market Wrap

Anxiety that tariffs and government firings would stymie growth in the world’s largest economy fuelled a three-week period of global market turmoil. American equities fell as Wall Street tempered its bullish outlook, but demand for economic havens supported national bonds.

A selloff in the S&P 500’s most powerful sector, large tech, weighed heavily on trading. The gauge was within striking distance of a correction, extending its decline from a record to 8.6%. The Nasdaq 100 has its worst day since 2022. A gauge of the Magnificent Seven megacaps fell 5.4%. Treasury yields fell on expectations that an economic downturn would prompt the Federal Reserve to cut interest rates. Bitcoin dropped below $80,000.

Traders also kept an eye on something that had not happened to the US equity benchmark since November 2023: a closure below the important 200-day moving average.

The S&P 500 fell 2.7%. The Nasdaq 100 declined 3.8%. In the megacap market, Tesla fell 15%, while Nvidia dragged a highly watched chipmaker index to its lowest level since April. The Dow Jones Industrial Average fell 2.1%.

The yield on 10-Yr Treasuries fell eight basis points to 4.22%. The dollar gained 0.2%. On Monday, approximately ten high-grade corporations delayed US corporate bond sales. WTI fell to below $66 per barrel, down more than 15% from its mid-January peak.