Morning Bid: Wall Street's epic swoon wipes out Trump bump

Mike Dolan

Tue, Mar 11, 2025, 3:36 AM 8 min read

By Mike Dolan

LONDON (Reuters) - Morning Bid U.S.

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets

Wall St's withering banal selloff has present wiped retired virtually each post-election gains and risks turning into a momentum-driven rout unless there's immoderate alteration successful the darkening economical representation oregon the uncertain U.S. authorities commercialized argumentation stance.

While watching this jarring representation unfold successful U.S. markets, I'm taking a look contiguous astatine the European defence spending reboot and the grade to which it whitethorn effect different circular of associated borrowing by European Union countries.

Find this and much connected the Wall Street rout below.

Today's Market Minute

* President Donald Trump’s tariffs person spooked investors,with fears of an economical downturn driving a banal marketsell-off that has wiped retired $4 trillion from the S&P 500’s peaklast month. * A cardinal economical advisor to President Donald Trump connected Mondaypushed backmost connected speech of recession stemming from uncertaintyaround his administration's tariff policies, adjacent arsenic a survey ofAmerican households showed consumers increasing much pessimisticabout their prospects. * Germany's Greens vowed to artifact plans for a massiveincrease successful authorities borrowing to revamp Germany's subject andrevive growth, but they besides forwarded rival proposals connected Mondayin a bid for compromise. * Ukraine President Volodymyr Zelenskiy met with Saudi CrownPrince Mohammed bin Salman up of talks betwixt Ukrainian andU.S. officials that Washington hopes volition present substantialprogress toward ending Russia's warfare with Ukraine. * U.S. President Donald Trump aims to physique metals refiningfacilities connected Pentagon subject bases arsenic portion of his program toboost home accumulation of captious minerals and offsetChina's power of the sector, 2 elder administrationofficials told Reuters.

The market's epic swoon

The milestones successful the U.S. marketplace reversal piled up connected Monday.

The S&P 500's 2.7% plunge marked its worst time of the year, arsenic it closed beneath its 200-day moving mean for the archetypal clip since 2023. 'Big Tech' mega caps were battered, and the tech-heavy Nasdaq clocked a 4% nonaccomplishment for the archetypal clip since 2022. The VIX 'fear index' of volatility deed its highest constituent since the yen-inspired detonation past August.

In azygous banal moves, Tesla's 15% driblet stood out. The car elephantine has present mislaid much than 50% of its worth since it peaked successful December.

Perhaps arsenic worrying arsenic the moves successful equities was the disturbance successful the recognition market, with borrowing premia connected high-yield U.S. firm bonds rising to the widest level versus U.S. Treasuries since September.