Massive Sell-Off Hits New York Stock Exchange Amid US Recession Fears

A significant acceleration in the downward trend that had already gripped the American market over the past few weeks was observed on March 10, 2025, in New York. Tech stocks at the New York Stock Exchange plummeted with their biggest drop since 2022, causing the Nasdaq 100 index to decline by nearly 4%. Cryptocurrency values also dropped sharply. The Wall Street fear index and a key measure of credit risk surged. Meanwhile, US Treasury bonds rallied, drastically reducing yields as they assumed the role of a last-resort safe haven, according to Bloomberg. Behind this turmoil lies growing concern over President Donald Trump’s tariff hikes, spending cuts, and geopolitical shifts. These anxieties intensified after Trump began warning about potential short-term ‘pain’ for the U.S. economy while attempting to re-balance global trade. Investors started preparing en masse. ‘The trading today felt like living through an absolute death spiral,’ said Alon Rosin, an analyst at Oppenheimer. The movements reflect a notable shift in sentiment less than two months into Trump’s presidency, which was once welcomed on Wall Street. Initially, the belief was that his plans for tax cuts and deregulation would drive the market forward, boosting an already steadily growing economy. However, this faded quickly over recent weeks as the chaotic spread of his tariff increases and push for federal spending cuts darkened prospects. Following the market close yesterday, Delta Air Lines Inc. appeared to confirm these fears by lowering its earnings expectations, citing eroded consumer and business confidence due to heightened uncertainty. Of course, Trump and his administration have begun signaling there may be an adjustment period as they attempt to rein in the growing federal deficit and challenge the global economic order. Comments from Trump over the weekend (March 8-9, 2025) led some to suggest he misjudged market sentiment, while others argued he supported a stock sell-off to lower interest rates. Trump is scheduled to meet with top business leaders today (March 11, 2025). Traders fled to ‘defensive havens’ or safer investments. For bond traders, this meant short-term bonds, with 2-year treasuries leading Monday’s rally, driving yields down by approximately 11 basis points. In the corporate debt market, as credit risk concerns rose, Wall Street bankers proceeded with around 10 deals designated for high-quality companies, and indices indicated investors were pulling away from lower-rated bonds. Bitcoin fell to a four-month low. Much of the selling focused on tech giants that had fueled the bullish market. The tech-heavy Nasdaq 100 fell 3.8%, pushing it deeper into correction territory. Tesla, once seen benefiting from CEO Elon Musk’s close ties with Trump, dropped over 15%. As trading intensified, investors sought refuge in energy stocks, basic consumer goods, and utility companies—sectors less affected by consumer spending cuts that tend to perform well during slowdowns. ‘If you’re an investor only for the long term, you need to put your money somewhere,’ said Steve Sosnick, chief strategist at Interactive Brokers. ‘If investors realize tough times are coming, these are the areas where investors tend to hide. A shelter from the storm.’