Stocks sink with S&P 500 in correction, bonds in demand amid tariff angst
By Sinéad Carew and Harry Robertson
Thu March 13, 2025 5:08 PM
The tariff wars continue to heat up and, in direct correlation, the stock market continues to drop drastically with big 3-digit dips across the board. Today, in addition to the Wednesday tariff on European steel and aluminum, now there is the additional threat of 200% tariffs on the EU as it becomes a litany of tariffs followed by reciprocal tariffs followed by more reciprocal tariffs and, so far, no one has been blinking. With the good inflation data reported yesterday and today from the CPI and PPI, we should be having a big rally but such momentum has been squashed by the ever-escalating trade war and fears of the recession it may well trigger.
The S&P, which has been flirting with the 10% correction benchmark, today sank below it and the Nasdaq has been well into correction since December. The good news is that historically only about 40% of corrections progress into bear markets, traditionally the 20% loss benchmark. And, as mentioned Monday, the other big signpost that stocks are in trouble is the bond market. Yields have fallen with increasing demand for U.S. Treasuries with investors heading for the exits and flocking to safe haven government debt and gold reaching a record high of nearly $2,293/oz, approaching the key milestone of $3,000/oz. At 15.1 billion, volume was below the 16.6 billion average.
DJ: 41,350.93 -82.55 NAS: 17,648.45
+212.36 S&P: 5,599.30
+27.23 3/12
DJ: 40,813.57 -537.36 NAS: 17,303.01
-345.44 S&P: 5,521.52
-77.78 3/13
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