Markets Overview

  • ASX SPI 200 futures down 0.9% to 7,896.00
  • Dow Average down 2.1% to 41,902.16
  • Aussie down 0.4% to 0.6282 per US$
  • US 10-year yield fell 8.3bps to 4.2188%
  • Australia 3-year bond yield rose 4 bps to 3.82%
  • Australia 10-year bond yield rose 3.5 bps to 4.44%
  • Gold spot down 0.8% to $2,885.54
  • Brent futures down 1.6% to $69.21/bbl

Economic Events

  • 10:30: (AU) March Westpac Consumer Conf SA MoM, prior 0.1%
  • 10:30: (AU) March Westpac Consumer Conf Index, prior 92.2
  • 11:00: (AU) Australia to Sell A$300 Million 2.75% 2041 Bonds
  • 11:30: (AU) Feb. NAB Business Confidence, prior 4
  • 11:30: (AU) Feb. NAB Business Conditions, prior 3

Anxiety that tariffs and government firings will torpedo growth in the world’s largest economy extended a three-week stretch of volatility across global markets. American stocks got hammered as Wall Street tempered bullish views while demand for recession havens boosted sovereign bonds.

A selloff in the S&P 500’s most influential group — big tech — weighed heavily on trading. The gauge came within a striking distance of a correction, extending its plunge from a record to 8.6%. The Nasdaq 100 saw its worst day since 2022. A gauge of the Magnificent Seven megacaps tumbled 5.4%. Treasury yields slid on bets that an economic slowdown would force the Federal Reserve to slash interest rates. Bitcoin slipped below $80,000.

Speculation is intensifying that President Donald Trump is willing to tolerate hardship in the economy and markets in pursuit of long-term goals involving tariffs and smaller government. Asked on Fox News’ Sunday Morning Futures whether he’s expecting a recession, he said, “I hate to predict things like that. There is a period of transition, because what we’re doing is very big.”

“We’ve gone from animal spirits to what are the odds of a recession,” said Gina Bolvin, president of Bolvin Wealth Management Group. “This is a headline-driven market; one that could change in an hour. Sit tight. Buckle up. We finally have the correction we were waiting for, and long-term investors will be rewarded again.”

Traders also kept a close eye on something that hasn’t happened with the S&P 500 since November 2023 – a close below the key 200-day moving average.

“There’s a saying on Wall Street about how nothing good happens below the 200-day moving average,” said Callie Cox at Ritholtz Wealth Management. “Honestly, out of all the crazy sayings that come out of this industry, it’s one you should take seriously. Selloffs accelerate and swings get dramatically bigger in the danger zone – or the space below the 200-day moving average.”

The S&P 500 dropped 2.7%. The Nasdaq 100 lost 3.8%. In the megacap space, Tesla Inc. sank 15% while Nvidia Corp. drove a closely watched gauge of chipmakers to the lowest since April. The Dow Jones Industrial Average lost 2.1%.

The yield on 10-year Treasuries slid eight basis points to 4.22%. The dollar rose 0.2%. About 10 high-grade companies delayed US bond sales on Monday. Oil fell to a six-month low.