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The U.S. stock market faced a significant downturn as recession concerns mounted, influenced by President Trump’s tariff policies. The Dow Jones Industrial Average plummeted by 552 points, and the S&P 500 and Nasdaq Composite also recorded notable losses, with the Nasdaq dropping 12.8% since its February peak.

This decline has been accompanied by heightened market instability, reaching levels not seen since December. Additionally, cryptocurrency exchange-traded funds have been experiencing outflows for the fourth week in a row, indicating a broader shift in investor sentiment.

S&P 500 Dips Below its 200-day Moving Average

The New York Federal Reserve’s recent survey showcased a bleak outlook for household finances, which have reached multiyear lows. The S&P 500’s dip below its 200-day moving average suggests potential ongoing challenges. In contrast, consumer staples stocks have outperformed, indicating a possible shift towards defensive strategies among investors.

Natural gas futures have surged to their highest since December 2022, driven by colder weather and supply concerns. Meanwhile, President Trump’s tariffs are anticipated to restrict U.S. economic growth, although they may encourage fiscal expansion in other countries.

Tech Stocks Take a Significant Hit

The tech sector has not been immune to the market downturn. Major companies like Nvidia (Nasdaq: NVDA) saw declines in premarket trading, reflecting broader concerns about the economy. Microsoft (Nasdaq: MSFT) saw its stock open at $385.84 but declined to $380.89 by mid-day, nearing its 52-week low of $378.91. Despite these fluctuations, analysts maintain a strong buy recommendation with a high target price of $650.00.

Meta Platforms (Nasdaq: META) also experienced a drop, opening at $608.07 and falling to $592.88. The company’s stock has been on a downward trajectory since mid-February, with a recommendation mean of 1.47692, indicating a strong buy sentiment.

In the Asia-Pacific region, markets displayed mixed results after a volatile trading week. Japan’s Nikkei 225 managed to post gains despite concerns surrounding upcoming U.S. tariffs on steel and aluminum.

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