Stocks closed lower on concerns over US trade policies and tech stock declines

From Nasdaq: 2025-03-18 18:20:55

Stock indexes closed lower on Tuesday, with the S&P 500 down -1.07%, Dow Jones down -0.62%, and Nasdaq down -1.66%. Concerns over US trade policies impacting the economy led to the retreat. March futures are also down. Chip stocks and tech giants like Tesla and Nvidia saw significant declines.

US economic news showed positive signs, with Feb housing starts up +11.2% and manufacturing production up +0.9%. Despite this, stocks remained under pressure. Geopolitical tensions in the Middle East, including Israeli airstrikes in Gaza and US strikes on Yemen, added to market uncertainty. Investors cut US stock holdings by a record amount, anticipating economic slowdown from tariffs.

Overseas markets fared better, with Euro Stoxx 50, Shanghai Composite, and Nikkei Stock 225 all closing higher. Interest rates saw T-notes rise on safe-haven buying amid stock retreats. European bond yields were mixed. Germany’s parliament approved fiscal policy changes to boost economic growth.

Stock movers included chip stocks like Marvell and Microchip closing down, impacting the broader market. Economic concerns hit travel stocks hard, with Royal Caribbean and Norwegian Cruise Line among the decliners. Bakkt Holdings, Sarepta Therapeutics, and other companies saw significant losses.

Defensive healthcare stocks like Humana and Cigna rose while mining stocks like AngloGold gained on higher gold prices. Willis Towers Watson Plc and EQT Corp also saw gains. Earnings reports for 3/19 include Five Below, General Mills, Ollie’s Bargain Outlet, and Williams-Sonoma. Market attention is on the upcoming FOMC meeting and potential rate cuts.



Read more at Nasdaq: Stocks Settle Lower as Megacap Tech Stocks Routed