Wall Street Sell-off Gathers Steam as Government Shutdown Looms Amid Trump Chaos

Barry Adams
10 Mar, 2025
New York City

Benchmark indexes on Wall Street plunged in Monday's trading and extended losses to the fourth consecutive week amid rising worries of economic slowdown. 

The S&P 500 index decreased 1.8%, and the Nasdaq Composite dropped 2.7% as investors factor in the negative impact of U.S. tariffs on global economic growth. 

Last week, Wall Street indexes turned sharply lower for the third consecutive week and extended 2025’s losses amid self-inflicted policy harms engineered by the U.S. president.

Over the week, the S&P 500 declined 3.1%, and the Nasdaq Composite dropped 3.5%. 

In the year so far, the S&P 500 is down 3.6% and the Nasdaq Composite has fallen 8.6%, as of 10:30 a.m. ET Monday.

Amid a high level of uncertainty, investors are increasingly seeking stability in U.S. Treasuries and selling stocks.

Donald Trump’s constant state of confusion and flip-flops are unnerving investors, stoking fears of stagflation and rate cut delays.

The U.S. economy, once the envy of the developed world, was on sound footing and flashing green on all key metrics; it is now teetering on recession.

Moreover, the Trump administration’s lack of competence is visible in how the president announces tariffs, then walks back or allows loopholes, followed by more exemptions to water down initial measures.

Rendering the initial tariff ineffective.

World markets are increasingly ignoring Trump, as companies find ways around import taxes and other stable trading partners.

In addition, Trump's uncertainty is spreading beyond tariffs to immigration, federal budgets, and taxes.

In the week ahead, investors are looking forward to the release of consumer price and producer price inflation reports on Wednesday and Thursday, respectively. 

Moreover, the JOLTS job opening report is also expected to confirm moderating but strong labor market conditions.

On the earnings front in the U.S., investors are looking ahead to the release of results from Ciena, Oracle, Ulta Beauty, DocuSign, Vail Resort, Dick’s Sporting Goods, Dollar General, and Kohl’s.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 2% to 5,654.24, the Nasdaq Composite edged down 3.4% to 17,581.08, and the Russell 2000 index was down 1.9% to 2,035.05.

The yield on 2-year Treasury notes edged lower to 3.93%, 10-year Treasury notes decreased to 4.22%, and 30-year Treasury bonds declined to 4.54%.

WTI crude oil decreased $0.40 to $66.63 a barrel, and natural gas prices edged higher by $0.07 to $4.47 a thermal unit.

Gold decreased by $7.67 to 2,903.79 an ounce, and silver edged down by $0.31 to $32.20.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.02 to 103.81 and traded at a two-year high.

 

U.S. Stock Movers 

Tesla decreased 3.3% to $241.54, and the electric vehicle maker has declined every week in 2025 after chief executive officer Elon Musk decided to spend more time in Washington, D.C. 

Tesla has plunged more than 40% in 2025 and scaled back from its high of $488 reached in mid-December. 

Large bank stocks declined sharply in Monday's trading on the worries that the economic slowdown could impact earnings in 2025.

Bank of America decreased 2.3% to $40.45, JPMorgan Chase fell 3.3% to $234.03, Wells Fargo dropped 4.3% to $68.06, and Citigroup declined 4.3% to $67.45.