Conner Paffrath
Mar 4, 2025
Between February 27 and March 3, the U.S. stock market experienced significant volatility jumping from ATHs
On March 3, President Donald Trump announced that 25% tariffs on imports from Mexico and Canada would take effect on March 4, causing major indices to decline sharply. The S&P 500 fell 1.8%, marking its largest one-day drop of the year, while the Nasdaq Composite decreased by 2.6%, and the Dow Jones Industrial Average slid 1.5%.
In addition to trade concerns, economic indicators contributed to market unease. Manufacturing data released during this period indicated weaker-than-expected performance and rising inflationary pressures. The Institute for Supply Management's survey showed a slowdown in manufacturing activity, further dampening investor sentiment. These developments led to increased market volatility and raised concerns about the potential impact on the broader economy.