US Stock Market Update: Nasdaq, S&P 500 Crashed, Dow Jones Erase Gains; What Is Impacting Wall Street?

US Market Update: Wall Street plunged on Wednesday, March 26, as tech stocks dragged overall indices, especially Nasdaq. Nvidia, Tesla, Amazon, Alphabet, and Meta who are referred to as the magnificent 7 stocks, are all trading in deep red. Investors sentiment dampened after Donald Trump reportedly announced that there will be limitations on flexibility over reciprocal tariffs to countries. Also, Trump hinted at imposing tariffs on more products.

Dow Jones: The Dow Jones Industrial Average or DJIA traded at 42,490.09, down by 97.41 points or 0.23%. The index is near its intraday low of 42,479.16.

Nasdaq Composite: The tech-heavy index Nasdaq nosedived by 341.85 points or 1.88% to trade at 17,928.34. The index is near its intraday low of 17,959.93.

S&P 500: This index also dipped by 46.21 points or 0.81% to trade at 5,718.75, which is near its intraday low of 5,724.68.

According to a Trading Economics report, the market fell due to a selloff in the tech sector.

Stocks like Nvidia and Tesla dipped by 6% each. While Alphabet, Amazon, Meta, Microsoft and Apple were down by 1% to 2.5%. Netflix also dropped by 2.4%. The majority of stocks were in red.

Trading Economics data pointed out that investor sentiment remained fragile as concerns over the ongoing trade war persisted, with traders awaiting further clarity on the reciprocal tariffs set to take effect on April 2nd. Economic data also disappointed, with core durable goods orders falling 0.3%, missing expectations of a 0.2% increase. Additionally, the CB Consumer Confidence, released yesterday, fell to its lowest level in four years. Further weighing on sentiment, the Congressional Budget Office warned that the Treasury could face a payment default as soon as August. On a brighter note, the energy sector outperformed, supported by a rise in oil prices.

Earlier, Trump had signalled that he may give breaks to a lot of countries on reciprocal tariffs. However, at the latest, he announced that there would be limitations on exceptions over tariffs to countries.

Trump told news outlet Newsmax, "I know there are some exceptions, and it's an ongoing discussion, but not too many, not too many exceptions. No, I don't want to have too many exceptions."

Furthermore, Brock Weimer, CFA and Investment Strategy, at Edward Jones said, "Equity-market weakness is primarily concentrated in growth sectors of the market following a report that NVIDIA could face more stringent regulations in China, which is weighing on sentiment for the broader technology sector. The tech-heavy Nasdaq is lower by over 1% while the Dow is faring better, lower by roughly 0.1%."

On the economic front, durable goods orders rose by 0.9% in February, above expectations for a -1% contraction. The stronger-than-expected February reading followed a robust 3.3% monthly gain in January, likely driven by companies attempting to front-run tariffs by placing goods orders before tariffs take effect. Bond yields are ticking slightly higher, with the 10-year Treasury yield opening the day around 4.33%, Weimer said.

Key Things To Watch Out Ahead:

Wednesday, March 26: Durable Goods, MBA Mortgage Applications Index

Thursday, March 27: New and Continuing Claims, GDP, Wholesale Inventories

Friday, March 28: PCE, Personal Income, Personal Spending