The U.S. stock market has recently encountered significant volatility, primarily driven by disappointing economic data and the ever-changing tariff policies under President Donald Trump. The three major stock indices concluded the week in the red, with the Dow Jones Industrial Average recording a notable decline of 2.37%.
In a similarly disheartening manner, the S&P 500 saw a drop of approximately 3.1%, marking its worst weekly performance since September of the previous year. The Nasdaq Composite, reflecting a heightened level of concern within the tech sector, fell by 3.41%, officially entering a correction phase after experiencing a decline of more than 10% from its most recent peak. Particularly alarming has been the performance of major technology stocks, which have struggled significantly.
Nvidia's market capitalization has plummeted, shrinking by a staggering $1 trillion from its historical high. Furthermore, Tesla has retreated over 46% from its peak, amplifying concerns among investors regarding the sustainability of high-flying tech stocks. The cryptocurrency market mirrored this trend of decline, with intensified selling pressures observed across various digital assets.
The Bitcoin strategic reserve, a promise made by President Trump, fell short of market expectations. Additionally, the crypto summit organized by the White House largely failed to provide any significant surprises or guidance, resulting in an exacerbation of the prevailing downturn. As a result, Bitcoin lost several crucial support levels, plummeting to a low of $80,000, representing a seven-day decline of nearly 12%.
At the time of writing, Bitcoin was reported at $82,150. Other prominent cryptocurrencies, such as Ethereum, also experienced even sharper declines, reflecting a general sense of pessimism in the market. The uncertainty surrounding Trump's tariff policies continues to loom large, and the recent non-farm payroll data did not offer a clear economic outlook, further amplifying market fatigue.
Investors remain on edge as they monitor key indicators, particularly the upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data. These figures will play a critical role in shaping the Federal Reserve's interest rate decisions during their meeting on March 18-19, adding another layer of intrigue to the current economic landscape..