Stock market facing uncertainty and worst quarter since 1980s

From Yahoo Finance: 2025-03-31 06:30:00

The US stock market is wrapping up its worst quarter compared to global markets since the 1980s. Uncertainty reigns as investors seek entry points amid trade wars and economic concerns. US stocks struggle, with the S&P 500 Index down 5.1% this year, trailing global counterparts by the widest margin since 1988.

Big tech stocks are crumbling, leading to a market shift as traders seek less risky positions due to trade tensions and economic fears. The S&P 500 and Nasdaq 100 Index face their worst quarters since 2022, following two years of significant gains that left the market vulnerable.

Despite the market turmoil, some on Wall Street believe in the strength of US large-cap winners. Valuation concerns persist, as global risks escalate and investors seek safe havens. However, a counterintuitive school of thought suggests a potential short-term rebound amid negative sentiment.

US equities have historically outperformed global markets, but recent trends show a different story. The US has trailed global counterparts by more than 2.8% this year, a pattern that has historically resulted in continued underperformance by the end of the year. The market faces headwinds but opportunities remain in other sectors.

Technical traders are eyeing key levels as the market faces uncertainty. A drop in positioning to historical lows could signal further declines. Volatility has returned, with the VIX climbing above 20, indicating rising anxiety among traders. Key economic reports and earnings releases will provide insight into the market’s direction.

Wall Street faces uncertainty as analysts adjust their outlooks. Expectations of less aggressive rate cuts by the Fed have led to revised S&P 500 targets. Strategists grapple with forecasting stock gains amidst weakening growth. Some remain optimistic about a potential market rebound while acknowledging the challenges ahead.

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