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MAGA: Markets Are Getting Annihilated
Wall Street took a 3% slap across the face Monday, with the Nasdaq enduring an even uglier 4% shellacking, as markets finally concluded what many had suspected: the Trump administration really does have it in for the economy.
Level Change 3/10/25 (%)
– – – – – – – – – – – – – – –
-2.1 Dow
-4.0 Nasdaq
-3.8 Nasdaq 100
-2.7 S&P 500
-2.2 S&P 400
-2.5 S&P 600
The S&P 500 and Nasdaq each logged their worst showings of the year, with the latter not looking this bad since September 2022. The selloff erased Friday’s fleeting optimism and reminded investors that last week was the S&P’s worst since early September. It’s now down nearly 9% from its February 19 record, while the Nasdaq has shed a brutal 13% from its December high.
A reckoning had been brewing for weeks, fueled by a drumbeat of tariff threats and deepening growth worries. Monday’s plunge wasn’t just another meandering drift lower, it was the cleansing collapse the market needed to shake out weak hands. The same traders who were chest-thumping about the S&P 500 above 6,000 now strike a more cautious tone — the opposite of what works. If you’d been clamoring for an entry point earlier in the bull market, welcome to your chance.
Team Trump remains unwavering in its economic crusade, defying warnings from economists and people who work for a living. Yesterday, the president told Fox News the economy may be in for a “period of transition,” while Treasury Secretary Bessent, opting for rehab imagery last week, described a necessary “detox period.” Markets groaned. You call this great?
The Citi Economic Surprise Index entered negative territory three weeks ago, and consumer resilience shows cracks. The long-assumed “Trump put” appears to be expiring worthless, with the president insisting he’s not using the stock market as his personal scorecard. Wonder why.
The latest NY Fed consumer survey showed short-term pain and long-term resignation: one-year inflation expectations ticked up to 3.1%, but the 3-5 year outlook held steady at 3%. Quit probabilities for those employed fell to their lowest since July 2023, suggesting workers feel less confident about greener pastures. On the flip side, spending expectations actually rose — a flicker of defiance in an otherwise nervous landscape.
Markets are no longer running on blind faith. Today’s rout wiped the grin off even the most ardent bulls. If this is MAGA’s economic encore, investors might start wondering if Markets Are Getting Annihilated was the real slogan all along.
— Jason Kelly
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