From Yahoo Finance: 2025-03-28 16:12:00

Stocks plummeted, bonds rose, and gold hit a record high amid concerns of economic weakness and escalating inflation due to a trade war. The S&P 500 endured its worst quarter since 2022, dropping 2%, with tech megacaps plummeting 3.5%. Consumer sentiment plunged, inflation expectations surged, and the 10-year Treasury yield fell to 4.26%.

Investors fear sustained inflation amidst economic slowdown, impacting market sentiment. The Nasdaq Composite fell 2.7%, Dow Jones slipped 1.7%, and megacaps like Amazon and Alphabet plummeted. Lululemon Athletica tumbled 14%. Volatility surged, with the VIX topping 21, and Bitcoin dropped 4%.

Consumers worry about soaring prices due to Trump’s tariff policy, potentially leading to reduced spending. Economists predict softer growth and limited investment amid trade policy uncertainty. US stock funds saw the largest weekly outflow in 2025, while European equities attracted inflows. Investor sentiment is at extreme levels, signaling potential market recovery.

Economists anticipate a turbulent market recovery amid ongoing policy uncertainty. While sentiment is stretched, historically, this has led to strong S&P 500 gains over the coming months. UBS Global Wealth Management reduces its year-end S&P 500 target but expects stocks to rebound by the end of 2025. Markets experienced significant declines: S&P 500 down 2%, Nasdaq 100 down 2.6%, Dow Jones down 1.7%, and more. Currencies and cryptocurrencies also saw fluctuations, with bonds and commodities registering changes.

Read more: S&P 500 Sinks 2% as Economic Fears Spur Bond Rally: Markets Wrap