U.S. Stock Markets Decline Amid Tariff Uncertainty and Economic Concern

U.S. stock markets declined on Sunday evening following a turbulent week, as investors remained cautious about President Donald Trump’s tariff policies and Federal Reserve Chair Jerome Powell’s remarks. Investors now await key inflation data, which could influence the Fed’s upcoming policy decision.

Major U.S. stock indexes suffered substantial losses last week, with the S&P 500 dropping nearly 3%, the Dow Jones Industrial Average declining 2.2%, and the Nasdaq Composite losing 3.5%. The market downturn followed Trump’s imposition of 25% tariffs on Mexico and Canada, though he later granted a temporary exemption, adding to policy uncertainty. Additionally, the administration’s plan to introduce global reciprocal tariffs from April 2 has increased investor concerns about potential economic slowdowns. Commerce Secretary Howard Lutnick reinforced Trump’s commitment to using tariffs as leverage against Mexico, Canada, and China, citing fentanyl-related issues.

On Monday, Wall Street futures fell as global economic concerns intensified. By early trading hours, Dow, S&P 500, and Nasdaq futures all recorded declines, with the Nasdaq now in correction territory after sliding over 10% from its December peak. Deflationary pressures in China compounded worries over slowing U.S. growth and the ongoing trade war.

Investors are also paying close attention to the New York Fed’s inflation expectations survey, which previously indicated stable short-term price growth but a slight uptick in long-term inflation projections. Additional economic data, including the consumer price index and labor market indicators, are due this week, potentially shaping market sentiment.

Meanwhile, major tech companies such as Oracle, Adobe, and DocuSign are set to release earnings reports, with Oracle’s results particularly anticipated following Trump’s announcement of a $500 billion AI investment in partnership with OpenAI and SoftBank. Despite Oracle’s recent growth in cloud services, analysts caution that even strong earnings may not shield tech stocks from market volatility.

Given the uncertainty, the S&P 500 may see continued volatility, with key support levels being tested if economic data disappoints or trade tensions escalate. Deflationary pressures in China and weaker-than-expected U.S. labor market data further fuel recession fears, potentially limiting any significant upside for the index. However, earnings reports from major tech firms could provide temporary relief, especially if results exceed expectations. Nevertheless, market participants should prepare for choppy trading, as macroeconomic risks and policy shifts continue to drive sentiment.

Data for Technical Analysis (1H) CFD US 500 [S&P 500]

Resistance : : 5721.5, 5728.1, 5738.8

Support : 5700.1, 5693.5, 5682.8      

1H Outlook   

Source: TradingView       

Buy/Long 1 If the support at the price range 5690.1 - 5700.1 is touched, but the support at 5700.1 cannot be broken, the TP may be set around 5725.2 and the SL around 5685.1, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 5721.5 - 5731.5, TP may be set around 5753.2 and SL around 5695.1, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 5721.5 - 5731.5 is touched, but the resistance at 5721.5 cannot be broken, the TP may be set around 5697.2 and the SL around 5736.5, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 5690.1 - 5700.1, TP may be set around 5669.2 and SL around 5726.5, or up to the risk appetite.       

Pivot Points Mar 10, 2025 10:00AM GMT