Volatile Markets: Trade Tensions & Tech Sell-off Hit S&P and Nasdaq

The S&P 500 and Nasdaq Composite faced their toughest quarter since 2022, amid concerns over the Trump administration's economic policies, including new tariffs. Major tech stocks like Tesla and Nvidia saw significant declines. Despite the turmoil, some sectors, notably energy, managed gains, while recession risks increased.

The S&P 500 and Nasdaq Composite experienced their most challenging quarterly results since 2022, driven by uncertainties surrounding President Donald Trump's economic strategies. New tariffs from the administration heightened concerns over potential global trade conflicts, adversely affecting U.S. equity markets in early 2025.

During the quarter, the S&P 500 fell 4.6%, while the Nasdaq Composite saw a dramatic drop of 10.5%. The Dow Jones was also impacted, decreasing by 1.3%. Key tech stocks, including Tesla and Nvidia, contributed to market declines as investors shifted away from growth sectors.

Despite these declines, some sectors like energy gained ground, reflecting a broader market response to volatile conditions. Analysts highlight the importance of diversification in mitigating risks associated with market concentration, suggesting better resilience against headline index fluctuations.

(With inputs from agencies.)