S&P 500 Selloff Hits 10% Before Afternoon Dip Buyers Emerge

Esha Dey

Tue, Mar 11, 2025, 11:18 AM 3 min read

(Bloomberg) -- The S&P 500 Index’s three-week sellofff reached 10% earlier dip buyers waded successful to stanch the rout, though trading remained volatile amid different bout of trade-war angst.

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The equity benchmark was down 0.6% arsenic of 2:16 p.m. successful New York, aft earlier falling arsenic overmuch arsenic 1.5%. That had it connected way to conscionable the accepted explanation of a correction, which would beryllium the archetypal since precocious 2023. It is present trading astatine 5,580, compared with the grounds closing precocious of 6,144.15 it deed past month. Technology behemoths Apple Inc., Nvidia Corp. and Alphabet Inc. were among the biggest contributors to the index’s losses connected the session. The tech-heavy Nasdaq 100, which entered its ain correction connected March 7, fell 1.3%.

There was nary evident catalyst for the day bounce, and the Cboe’s volatility gauge remained elevated astatine 27.5.

“We are successful a concern wherever the pendulum has shifted and fearfulness has taken over,” said Adam Sarhan, laminitis of 50 Park Investments. “A batch of this has to bash with the ‘Trump trade’ being unwound, but besides concerns astir maturation going forward, and besides the R-word, which is recession.”

Equities sentiment has soured rapidly successful caller weeks arsenic economists dial backmost their expectations for economical maturation based connected the imaginable for a brutal commercialized war. Those fears escalated aft President Donald Trump said successful a Fox News interrogation connected March 9 the US system faces “a play of transition” and refused to regularisation retired the anticipation of a recession.

Mega-Tech Selloff

“A tenable basal lawsuit for the US system is maturation trending successful a 1.5%-2% scope implicit the adjacent twelvemonth oregon so, down from astir 2.5% implicit the past fewer years, based connected tariff implementation,” Dennis DeBusschere of 22V Research wrote successful a enactment to clients.

At the aforesaid time, the the mega-cap tech stocks that person mostly driven the S&P 500’s much than 50% summation implicit the past 2 years are caught successful a selloff, arsenic investors turn doubtful astir the contiguous aboriginal of artificial quality and, much broadly, retreat from riskier maturation assets.

Meanwhile, sell-side strategists are informing astir rising volatility successful equities, with Morgan Stanley predicting the S&P 500 volition driblet arsenic overmuch arsenic 5% to 5,500 successful the archetypal fractional arsenic firm net endure from tariffs and little fiscal spending. JPMorgan Chase & Co. and RBC Capital Markets person besides tempered their bullish calls for 2025.