14/03/2025 07:48:52
Wall Street suffered another sharp decline overnight as escalating trade tensions weighed heavily on investor sentiment. The S&P 500 closed 1.39% lower at 5,521.52, officially entering correction territory after falling more than 10% from its recent peak. The Dow Jones Industrial Average lost 537 points, marking its worst week since June 2022, while the Nasdaq Composite fell 1.96%, dragged down by steep losses in major technology stocks.
The sell-off follows renewed threats from President Donald Trump, who pledged to impose 200% tariffs on European alcoholic beverages in response to the EU’s 50% levy on American whiskey. The move rattled global markets, adding to concerns over the broader set of tariffs scheduled for April 2.
Technology Stocks Under Pressure
Tech giants bore the brunt of the latest market rout. Meta dropped 4.7%, Apple declined 3.4%, and Tesla fell 3%. Smaller tech firms were hit even harder, with Atlassian tumbling 8.1%, bringing its one-month decline to a staggering 34%. Investors are growing increasingly concerned that trade uncertainty, combined with the Federal Reserve’s cautious stance on interest rates, could dampen growth in the sector.
Economic Data Fails to Reassure Investors
While the latest U.S. inflation data provided some relief, it wasn’t enough to offset market fears. The producer price index for February remained flat, suggesting easing inflationary pressures, but traders remain focused on the potential economic fallout from Trump’s trade policies. Treasury Secretary Scott Bessent dismissed market concerns, stating that the administration is focused on the long-term economy rather than short-term volatility.
Australian Market Set for Weak Open
Australian shares are poised to follow Wall Street lower, with the ASX 200 expected to dip at the open. Futures are pointing to a 12 point fall. Investor uncertainty surrounding Trump’s tariffs remains a key driver, particularly after he reaffirmed that he would not reconsider the trade measures.
The global sell-off has hit Australian tech stocks as well. Consumer and industrial sectors are also under pressure, as investors brace for potential disruptions to trade and economic growth.