Although the stock market began the week positively, the five-day trading session ended with massive losses as investors were spooked by the threat of accelerating inflation and uncertainty surrounding President Donald Trump’s trade tariffs.
The impact of these losses is evident in capital movement involving the benchmark S&P 500 index, which wiped out about $1 trillion in market capitalization during the March 28 session.
This outflow marked the largest daily decline since March 10, 2025. Most importantly, the downward trajectory is concerning since the index is just 50 points away from correction territory.
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At the close of the last session, the S&P 500 was down 1.97% at 5,580 points. On a year-to-date basis, the index has plunged almost 5%.
Since February 19, the market has sharply declined, shedding $5 trillion or 9.2% in value. This drop has erased six months of gains, dragging the index back to levels last seen in September 2024.
Among the biggest losers were technology giants, including Apple (NASDAQ: AAPL), which dropped 2.66%; Amazon (NASDAQ: AMZN), which fell 2.9%; and Alphabet (NASDAQ: GOOG), which saw a 4.09% decline. Meta (NASDAQ: META) and Tesla (NASDAQ: TSLA) also suffered losses, declining 1.76% and 1.37%, respectively.
The ongoing sell-off stems from uncertainty over the United States trade policy, with investors on edge about looming tariffs with Canada as some are set to take effect on April 2 with the looming threat of reciprocal tariffs on the horizon.
Adding to the turmoil, the core PCE price index, a key Federal Reserve inflation gauge, rose 2.8% year-over-year in February, exceeding expectations of 2.7%. On a monthly basis, it climbed 0.4%, surpassing the 0.3% forecast.
What next for S&P 500
Regarding what to expect next, legendary trading expert Peter Brandt noted in an X post on March 28 that S&P 500 futures remain in a confirmed downtrend after breaking below key support levels.
Technical indicators suggest more losses ahead. Since peaking above 6,250, the index has erased months of gains.
The veteran trader’s analysis indicated that the index has experienced a significant breakdown from a prolonged consolidation range, reinforcing bearish momentum.
According to Brandt, the S&P 500’s 2X measured move target stands at 5,170, which aligns with an 18% drop from the high, making it a crucial point to watch amid the current volatile conditions.
Short-term resistance lies around 5,728.50, while failure to reclaim this level could accelerate selling pressure toward the projected downside target.
Meanwhile, analysts are sharing a varied outlook for the index. As reported by Finbold, Ed Yardeni cut his 2025 target to 6,400 from 7,000 and his 2026 target to 7,200 from 8,000, citing stagflation risks and Trump-era tariffs.
Goldman Sachs now sees 6,200, while Morgan Stanley’s Michael Wilson warned of a drop to 5,500, with resistance at 6,100 due to policy and earnings concerns.
Featured image via Shutterstock
