S&P 500 closes higher Monday after briefly touching six-month low:
The S&P 500 staged a late-day rebound on Monday, closing 0.55% higher after briefly falling to a six-month low earlier in the session as investors braced for potential new tariffs from former President Donald Trump. While the Dow Jones Industrial Average jumped 1%, the tech-heavy Nasdaq Composite slipped 0.14%, dragged down by declines in AI-linked stocks like Nvidia and Tesla. Market sentiment remained fragile due to fears that Trump’s proposed "reciprocal tariffs," set to be unveiled Wednesday, could slow economic growth especially after a weak Q1 GDP estimate of just 0.3%. The rally in defensive stocks like Coca-Cola contrasted with another tough month for tech, capping a turbulent quarter that saw the S&P 500 drop 5.8% in March, its worst monthly performance since late 2022.
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The market's performance on Monday showcased a mix of resilience and caution, reflecting broader concerns about economic growth and policy uncertainty. The late-day rebound in the S&P 500 suggests a certain level of optimism, but it was still a volatile day overall, with the index briefly hitting a six-month low earlier. This indicates the fragility of investor sentiment as they face looming risks, especially in light of former President Trump's potential new tariffs. The proposed "reciprocal tariffs" could undoubtedly weigh on the economy, particularly with already subdued growth expectations, such as the weak Q1 GDP estimate of just 0.3%. If these tariffs are implemented, they could exacerbate inflationary pressures and disrupt global trade, adding another layer of uncertainty for investors. The S&P 500 dropped by 5.8% for March, underscoring the volatility and investor unease that has characterized the year's first quarter. All in all, Monday’s movements reflect a market searching for direction amid conflicting signals from economic data and geopolitical risks.
I hope the dust settles, waking up every morning to some worse and worse red in the market is concerning. I saw now that the market is now worse than it was in 2020.
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