{"id":49032,"date":"2025-03-13T21:28:41","date_gmt":"2025-03-13T21:28:41","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/"},"modified":"2025-03-13T21:28:41","modified_gmt":"2025-03-13T21:28:41","slug":"market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/","title":{"rendered":"Market Recap: S&#038;P 500 Enters Correction Territory Amid Trade War Escalation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Major_Indexes_Tumble_as_Trade_Tensions_Rise\" >Major Indexes Tumble as Trade Tensions Rise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Trade_War_Escalation_The_Primary_Market_Mover\" >Trade War Escalation: The Primary Market Mover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Sector_Performances_and_Notable_Stocks\" >Sector Performances and Notable Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Economic_Indicators_and_Upcoming_Events\" >Economic Indicators and Upcoming Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Market_Outlook_and_Investor_Sentiment\" >Market Outlook and Investor Sentiment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-enters-correction-territory-amid-trade-war-escalation\/49032\/#Looking_Ahead\" >Looking Ahead<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Tumble_as_Trade_Tensions_Rise\"><\/span>Major Indexes Tumble as Trade Tensions Rise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Thursday, March 13, 2025, Wall Street experienced a significant sell-off, with the <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> officially entering correction territory. The market&#8217;s downturn was primarily driven by escalating trade tensions between the United States and its trading partners, particularly the European Union.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<p><b>Key Index Performances:<\/b><br \/>&#8211; S&#038;P 500: Fell 1.4% to 5,521.52, now down 10% from its February record high<br \/>&#8211; <a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average: Dropped 1.3% to 40,813.57<br \/>&#8211; Nasdaq Composite: Declined 2% to 17,303.01<br \/>&#8211; Russell 2000: Decreased 1.6% to 1,993.69<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>The S&#038;P 500&#8217;s slide into correction marks the first such event since 2023, highlighting the severity of the current market turbulence.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trade_War_Escalation_The_Primary_Market_Mover\"><\/span>Trade War Escalation: The Primary Market Mover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The day&#8217;s losses were largely attributed to President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s threat to impose new tariffs on the European Union. This move comes in response to the EU&#8217;s recent imposition of a 50% tariff on U.S. spirits, including bourbon, which was itself a retaliation against <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s 25% tariffs on steel and aluminum.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<p>Trump&#8217;s statement that he is &#8220;not going to bend&#8221; on the steel and aluminum tariffs has intensified market concerns about a potential global trade war. The President&#8217;s assertion that any economic disruption &#8220;won&#8217;t be very long&#8221; did little to assuage investor worries.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sector_Performances_and_Notable_Stocks\"><\/span>Sector Performances and Notable Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The technology sector, which has been a key driver of market volatility in recent sessions, showed signs of correction:<\/p>\n<p>&#8211; NVIDIA Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>): Gained 6.4%<br \/>&#8211; Broadcom Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AVGO\">AVGO<\/a>): Rose 2.2%<cscitation citation_id=\"task_2__3\"><\/cscitation><\/p>\n<p>However, other companies faced challenges:<\/p>\n<p>&#8211; Adobe Inc.: Experienced weak earnings, impacting its stock price<br \/>&#8211; American Eagle Inc.: Also reported disappointing earnings<br \/>&#8211; Intel Inc.: Bucked the trend, jumping up to 11% after naming a new CEO<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Indicators_and_Upcoming_Events\"><\/span>Economic Indicators and Upcoming Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the market downturn, some economic indicators provided a glimmer of hope:<\/p>\n<p>1. <b>Inflation Data:<\/b> The Consumer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CPI\">CPI<\/a>) increased by 0.2% in February, lower than January&#8217;s 0.5% rise. This cooler-than-expected inflation report initially provided some relief to the markets.<cscitation citation_id=\"task_2__3\"><\/cscitation><\/p>\n<p>2. <b>Producer Price Index:<\/b> Investors are eagerly awaiting the release of wholesale inflation data, which could further influence market sentiment.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>3. <b>Oil Inventories:<\/b> U.S. commercial crude oil inventories increased by 1.4 million barrels for the week ended March 7, 2025. This tighter-than-expected inventory led to a 2% rise in global oil prices.<cscitation citation_id=\"task_2__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook_and_Investor_Sentiment\"><\/span>Market Outlook and Investor Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The current market environment is characterized by extreme uncertainty, primarily due to the unpredictable nature of U.S. trade policies. The CBOE Volatility Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=VIX\">VIX<\/a>), often referred to as Wall Street&#8217;s fear gauge, has surged to its highest level since December, indicating heightened investor anxiety.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<p>Adam Turnquist, chief technical strategist at LPL Financial, noted, &#8220;Tariff uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns.&#8221;<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead\"><\/span>Looking Ahead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As markets navigate through this period of volatility, investors will be closely monitoring:<\/p>\n<p>1. Developments in trade negotiations between the U.S. and its trading partners<br \/>2. Upcoming economic data releases, particularly those related to inflation and employment<br \/>3. Corporate earnings reports and their potential impact on individual stocks and broader market sentiment<\/p>\n<p>While the current correction has raised concerns, historical data suggests that such events are not uncommon. The last S&#038;P 500 correction in 2023 took 24 days to recover, providing some context for investors looking ahead.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<p>As the market continues to grapple with trade uncertainties and economic indicators, investors are advised to stay informed and maintain a long-term perspective on their investment strategies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Tumble as Trade Tensions Rise On Thursday, March 13, 2025, Wall Street experienced a significant sell-off, with the 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