U.S. Stocks Tumble on Tariff Fears: Nasdaq Composite, S&P 500, and Dow Jones See Significant Declines

As of March 6, 2025, the US stock market experienced significant declines, driven largely by concerns over newly implemented tariffs and their potential impact on the economy.The Nasdaq Composite index slumped by 2.6 percent, pushing it into correction territory. The S&P 500 dropped by 1.8 percent, and the Dow Jones Industrial Average was off by 0.8 percent. These declines were led by tech stocks, with companies like Marvell Technologies and MongoDB seeing their shares tumble by nearly 20 percent each after their current-quarter outlooks fell short of expectations.Key factors driving today's market direction include the Trump administration's tariffs on imports from Canada and Mexico, which have raised concerns about inflation and economic growth. Despite a one-month delay on tariffs for cars and car parts announced yesterday, the uncertainty surrounding future tariffs has kept investors cautious.Notable sector performance saw big tech stocks sliding, with Broadcom down about 4 percent, Tesla also down about 4 percent, and Nvidia down by about 3 percent. Automakers, which had gained ground yesterday following the tariff delay, did not see the same relief today.In terms of actively traded stocks, Marvell Technologies and MongoDB were among the biggest losers, while there were no significant gainers in the major indexes.Significant market-moving news includes the ongoing tariff disputes and their potential economic impact. Layoffs have also soared to their highest monthly total since July 2020, according to a report from Challenger, Gray, and Christmas, adding to economic concerns.Looking forward, pre-market futures indicate further declines, with Dow Jones Industrial Average futures down by 0.9 percent, S&P 500 futures off by 1.1 percent, and Nasdaq 100 futures leading the decline with a drop of 1.5 percent.Key events to watch for tomorrow include the release of the February jobs report, which is highly anticipated and could influence investor sentiment and Federal Reserve policy decisions. Important upcoming earnings releases include Broadcom's quarterly results, scheduled after the market close tomorrow.Potential market catalysts include further developments on the tariff front and any additional economic data that could provide clarity on the health of the US economy. The 10-year Treasury yield, currently at 4.29 percent, will also be closely watched for signs of inflation and interest rate expectations.This content was created in partnership and with the help of Artificial Intelligence AI