Stock Market Update: Dow Gains 400 Points, Stocks Reverse Losses as Quarter Closes on a Low Note
March 31, 2025, by Rian Howlett, Karen Friar, and Ines Ferré
In a day marked by volatility, the U.S. stock market rebounded on Monday, with the Dow Jones Industrial Average gaining 400 points, or approximately 1%, as investors attempted to shake off the poor performance that characterized the last month and quarter. The gains came as trade-war concerns loom in the wake of President Trump’s upcoming tariff announcements planned for later this week.
Key Indices Performance
The Dow Jones Industrial Average (^DJI) managed to erase early losses to close at 40,000. In contrast, the tech-heavy Nasdaq Composite (^IXIC) finished slightly down by 0.1%, while the S&P 500 (^GSPC) recovered from early losses to close up nearly 0.6%. Despite this recovery, the Nasdaq and S&P 500 ended the first quarter down over 10% and 4.5%, respectively, marking their worst quarterly results since 2022. ## Impact of Trade Tariffs
Market observers attribute much of the day’s trading activity to rising anxieties surrounding President Trump’s fast-evolving tariff policies. The looming tariffs are expected to be the broadest yet and are poised to impact trade relations significantly, with Trump suggesting that he plans to target “all countries” with reciprocal tariffs beginning on April 2—a move he has termed “Liberation Day.”
Comments from insiders reported by The Washington Post indicated Trump’s desire to implement even more extensive levy measures, further contributing to uncertainty in the markets. Investors have been cautious due to fears about how these trade policies may affect economic stability, especially in light of persistent inflation worries.
Second Quarter Outlook
As investors prepare for the upcoming March jobs report, which is anticipated to offer insights into the U.S. labor market, there is a palpable sense of caution. This report, due later this week, will complement updates on private payrolls and job openings, key metrics that market participants will scrutinize closely for signs of economic strength.
Notable Stock Movements
Among the stocks showing significant movements, tech giants like Nvidia (NVDA) and Tesla (TSLA) faced notable declines, with Nvidia on track for nearly a 20% loss year-to-date and Tesla seeing a staggering drop of over 35%. The broader tech sector, particularly growth stocks, has suffered amidst ongoing fears of inflation and an uncertain economic outlook arising from trade tensions.
Oil Market Reactions
In related market activity, oil prices surged to eliminate earlier year-to-date losses, closing on a positive note as fears of potential supply constraints emerged in conjunction with Trump’s threat to impose hefty tariffs on countries purchasing Russian oil. West Texas Intermediate futures climbed over 3% to settle above $75 per barrel following these developments.
Conclusion
As the stock market wraps up a tumultuous first quarter with a flicker of optimism on the final trading day, the prevailing question remains how ongoing trade negotiations and impending tariffs will shape financial outlooks. Market participants will be closely monitoring not just the immediate consequences of these tariffs but also broader economic indicators in the weeks to come. With the uncertainty that looms over trade relations and inflation, the second quarter is shaping up to be just as challenging as the first.
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