'Fall was inevitable…panicking now is…' – Nithin Kamath lists 3 mistakes to avoid in stock market crash@Nithin0dha #stockmarketcrash https://t.co/OtgZB6h3IS
— ET NOW (@ETNOWlive) March 3, 2025
The stock market faced another challenging day on Tuesday as major indices posted losses amid concerns over economic growth and disappointing consumer confidence data. The S&P 500 slipped 0.47%, ending at 5,955.25, while the tech-heavy Nasdaq tumbled 1.35% to close at 19,026.39. The Dow Jones Industrial Average managed a slight gain, rising 159.95 points, or 0.37%, to end at 43,621.16.
Sensex Today, Stock Market LIVE Updates March 3: Sensex turns flat, Nifty recovers 150 points from day's low to trade at 22150https://t.co/dyfP6AlWoE
— ET NOW (@ETNOWlive) March 3, 2025
The decline came after the latest consumer confidence survey from The Conference Board revealed weakened sentiment among consumers, adding to a series of disappointing economic data releases from the previous week. Ross Mayfield, an investment strategist at Baird Private Wealth Management, commented, “All of that comes together to call into question the underpinning of what has been the strength of the U.S. economy the last couple years, which is the consumer and the job market.”
S&P 500 up 1.59% today for the best last day of February since 1988 (+2.05%).
— Ryan Detrick, CMT (@RyanDetrick) February 28, 2025
Investors sought safety in the U.S. bond market, with the benchmark yield dropping below 4.3%, its lowest level since December. Bitcoin, often correlated with stock movements, fell to a three-month low and is trading almost 20% below its all-time high.
Major bank stocks declined over 1% due to rising recession concerns. High-momentum stocks that have driven market gains also struggled; Nvidia lost 3%, putting it down around 13% for the week. Electric vehicle maker Tesla saw a sharp drop of over 8%.
Trade tensions added to market uncertainty.
Market sentiment amid economic concerns
President Trump announced on Monday that tariffs on imports from Canada and Mexico would resume after the current 30-day moratorium ends.
The administration is also preparing for tighter restrictions on semiconductor exports to China. Hims & Hers Health plummeted more than 27% despite its fourth-quarter earnings and revenue beat, marking its worst percentage decline on record. Palantir shares fell 15% last week following a stock sale plan by CEO Alex Karp and news of potential defense budget cuts.
Trump Media tumbled 7.4%, marking its worst day since January and extending its losing streak to seven days. Krispy Kreme shares fell 24% after missing fourth-quarter expectations. Chegg dropped 28% following a disappointing earnings report.
Zoom shares decreased by 8% after providing an underwhelming full-year revenue forecast. It has been a challenging February for financial stocks. The sector is on track for its worst monthly performance since late 2024, with notable declines across multiple major financial institutions.
As the market continues to grapple with economic uncertainties, investors are closely monitoring forthcoming earnings reports and economic indicators for signs of recovery or further decline.
