S&P 500 and Nasdaq hit worst quarterly performance amid Trump tariff uncertainty
U.S. equity markets experienced steep declines in Q1 2025 amid concerns over new tariffs from President Trump, with the S&P 500 and Nasdaq recording their worst quarterly performances since 2022. Technology stocks led the losses while energy and financial sectors provided limited support.
Published on April 1, 2025
In the first quarter of 2025, U.S. equity markets suffered major declines as uncertainty over the Trump administration’s new tariff policies deepened fears of a global trade war. The S&P 500 fell by 4.6% and the Nasdaq dropped by 10.5% – their worst quarterly results since 2022 – while the Dow Jones slipped 1.3%. Technology stocks were particularly hard hit, with Tesla and Nvidia plunging 36% and nearly 20%, respectively. In contrast, gains in the energy sector and support from financial stocks momentarily softened the downturn.
Additional details from recent reports have highlighted growing market volatility ahead of Trump’s planned tariff announcement – branded as “Liberation Day” – set for early April. Goldman Sachs has raised the probability of a U.S. recession to 35% and anticipates further interest rate cuts by the Federal Reserve. Investors continue to monitor upcoming economic data and speeches by central bank officials as global markets, including Asian exchanges, react to the evolving economic landscape. (March 2025)