Stock market news for March 18, 2025

Shares pulled again Tuesday as a sell-off that has engulfed Wall Road in latest weeks resumed after two straight successful classes.

The Dow Jones Industrial Common misplaced 260.32 factors, or 0.62%, closing at 41,581.31. The S&P 500 shed 1.07%, ending at 5,614.66. The broad market index concluded the day 8.6% off its closing excessive reached in February, bringing it close to correction territory. The Nasdaq Composite dropped 1.71% and settled at 17,504.12.

Tesla, one of many shares hardest hit through the market’s latest correction, was down but once more on Tuesday. The inventory fell greater than 5% after RBC Capital Markets lowered its worth goal on the electrical car title, citing rising competitors within the EV house. It has declined greater than 36% over the previous month.

The EV maker wasn’t the one tech title down through the session. Shares of Palantir and Nvidia dropped practically 4% and greater than 3%, respectively. The Expertise Choose Sector SPDR Fund (XLK) was additionally down greater than 1%.

“It does appear the market really does want to rotate into things that haven’t worked as well [and] out of things that did work well for the last couple of years, so that may be just what all this is about,” stated Rhys Williams, chief funding officer at Wayve Capital.

“The markets are going to remain choppy up until whatever decision is made on April 2,” Williams additionally stated, referring to President Donald Trump’s impending tariff exemption deadline on some imports from Canada and Mexico.

The declines observe a second-straight successful session on Wall Road. That marked a flip after a number of robust weeks on Wall Road as some delicate financial knowledge and Trump’s on-again-off-again tariff coverage left buyers cautious of the U.S.’ monetary well being.

The S&P 500 formally entered correction territory final week, however the index made up some floor within the restoration rally seen in Friday’s and Monday’s classes. Regardless of the latest bounce, the tech-heavy Nasdaq nonetheless sits in a correction, a time period used to explain an index falling not less than 10% from a latest excessive. The three main averages all stay down on the 12 months, underscoring the power of the market’s pullback.

Whereas buyers proceed to observe updates out of the White Home, they’re going to flip their consideration to the Federal Reserve’s two-day coverage assembly that kicked off Tuesday.

Merchants will carefully observe Wednesday afternoon’s rate of interest announcement and subsequent press convention with Fed Chair Jerome Powell. Fed funds futures are pricing in a 99% likelihood that the central financial institution holds charges regular, in response to CME’s FedWatch Software.