Markets Overview
- ASX SPI 200 futures down 0.2% to 7,741.00
- Dow Average down 1.4% to 40,780.90
- Aussie down 0.6% to 0.6284 per US$
- US 10-year yield fell 5.0bps to 4.2625%
- Australia 3-year bond yield rose 0.2 bps to 3.77%
- Australia 10-year bond yield fell 1.9 bps to 4.42%
- Gold spot up 1.7% to $2,984.98
- Brent futures down 1.6% to $69.82/bbl
Economic Events
It was only three weeks ago that exuberance over Donald Trump’s blueprint for the economy had vaulted US stocks to a record high. Today, with concern mounting over the goals and impact of his trade war, the S&P 500 tumbled into its first 10% correction in almost two years.
Volatility surged anew across asset classes Thursday, extending a retreat from risk that has lopped $5 trillion from the US equity benchmark and shows signs of seeping into high-yield bonds. New salvos in President Trump’s tariff offensive spurred another race for havens in the Treasury market.
The S&P 500 — perched at a record as recently as Feb. 19 — slid to a six-month low. This year’s selloff in megacaps deepened, amplifying the moves. And speculative corners on Wall Street from unprofitable tech to the most-shorted shares and crypto got crushed. An $8 billion exchange-traded fund tracking junk bonds saw one of its biggest losses in 2025, bucking the rise in Treasuries.
In another sign of a trade-war escalation, Trump threatened to enact a 200% tariff on European wine, champagne and other alcoholic beverages. Later Thursday, Trump said he would not repeal tariffs on steel and aluminum that took effect this week, nor back off plans for sweeping reciprocal tariffs on global trading parters set to start as soon as April 2.
“In only a few weeks, the broader market has gone from record highs to correction territory,” said Adam Turnquist at LPL Financial. “Tariff uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns.”
The S&P 500 fell 1.4%. The Nasdaq 100 slid 1.9%. The Dow Jones Industrial Average dropped 1.3%. A gauge of tech megacaps lost 2.5%. Adobe Inc. sank on a disappointing outlook, while Intel Corp. surged after naming an industry veteran as its next chief.
The yield on 10-year Treasuries fell five basis points to 4.27%. A $22 billion US sale of 30-year bonds was weak. The dollar rose 0.1%.
