In March 2025, the S&P 500 index declined by 5.7%, marking its worst monthly performance since December 2022. This decline was primarily driven by escalating fears of a global trade war, following President Donald Trump’s announcement of new tariffs targeting aluminum, steel, automobiles, and all goods from China. These measures heightened concerns about a potential recession in the United States, prompting analysts, including those at Goldman Sachs, to increase the probability of a recession to 35% within the next year. Despite a slight rebound of 0.55% in the last trading session of March, the S&P 500 closed the month at 5,850.31 points, down from 6,207.54 points at the end of February. ​

The Nasdaq-100 index experienced a significant decline of 8.2% in March, also recording its worst monthly performance since December 2022. The technology sector was particularly affected by the trade tensions, with major tech stocks experiencing substantial losses. For instance, Nvidia’s shares plunged by 6% on March 27, contributing to a monthly decline of over 13%. Tesla’s stock also tumbled by 5.6% on the same day, adding to its monthly losses. The Nasdaq Composite index closed at 17,889.01 points on March 27, reflecting the broader impact on technology stocks. ​

The Dow Jones Industrial Average (DJIA) fell by 5.28% in March, closing the month at 42,001.76 points, down from 44,544.66 points at the end of January 2025. This decline was largely attributed to the implementation of 25% tariffs on imports from Canada and Mexico, announced by President Trump to take effect on April 2, 2025. These tariffs intensified fears of a global trade war, leading to significant market volatility. Despite a 1% rebound during the last session of March, the DJIA’s gains were insufficient to offset the month’s accumulated losses. The tariffs also had a pronounced impact on specific sectors; for example, major U.S. automakers like Ford and General Motors experienced significant stock declines due to their reliance on supply chains in Mexico and Canada. ​

In summary, the major U.S. stock indices experienced significant declines in March 2025, reflecting investor concerns over escalating trade tensions and an uncertain economic outlook. The technology and automotive sectors were notably affected, with substantial losses in major companies’ stock values. These developments underscore the growing fears of a potential recession in the United States.