US Indices Sink as Trade Policy Fears Spark a Bond Rally – US Market Wrap

Stocks fell, bonds rose, and gold reached a new high, following signs of weakness in the US economy’s main engine and concerns that inflation could accelerate amid a trade war.

With only one session remaining before the end of a quarter that is expected to be the S&P 500’s worst since 2022, the gauge dropped 2%. Data showed a decline in US consumer sentiment and an increase in long-term inflation expectations. That came after another report highlighted sluggish spending and an increase in prices ahead of next week’s major US tariff rollout. A gauge of technology megacaps fell 3.5%. The yield on 10-year Treasuries fell 10 basis points to 4.26%.

As President Donald Trump’s tariff policy expands, consumers are increasingly concerned that the additional duties will raise prices. A prolonged rise in costs may prompt households to reduce discretionary spending, which has implications for the overall economy and Corporate America.

According to a survey of economists, they have reduced their expectations for US growth this year, forecasting softer consumer spending and more limited capital investment amid rising uncertainty caused by the ever-changing trade policy.

The Nasdaq Composite fell 2.7% in March, marking the fifth consecutive drop of at least 2% in a single month since the bear market in June 2022.
The Dow Jones Industrial Average declined 1.7%. All megacaps fell, with Amazon and Alphabet down more than 4%.
The dollar dropped 0.1%. Bitcoin fell 4%.