The S&P 500 index fell 1.5% last week – wiping out the previous week’s gain – amid worries about additional tariffs and worsening consumer sentiment.
With just one trading day remaining in the month, the index is down 6.3% for March. This puts the market benchmark on track for its largest monthly drop since September 2022.
The index is also down 5.1% for 2025 and on pace for its first quarterly drop since Q3 of 2023. This quarter, marked by the start of President Donald Trump’s second term, has been marred by uncertainty over the administration’s tariff policies and federal job cuts.
The US is expected to add reciprocal tariffs as well as levies on automotive imports this week. US consumer sentiment has fallen three months in a row as the expectations index slumped and the inflation outlook jumped amid economic policy uncertainties according to final results released Friday from the University of Michigan’s Surveys of Consumers.
Other data released Friday showed a smaller-than-expected rise in February consumer spending while the Federal Reserve’s preferred inflation metric unexpectedly accelerated.
Seven of the S&P 500’s 11 sectors were down for the week, led by a 3.7% drop in technology and a 3.2% loss in communication services. Industrials fell 1.3% and health care shed 1%. Materials, utilities and financials also slipped.
Four sectors saw gains, as consumer staples rose 1.7%, energy added 0.8%, real estate edged up 0.5% and consumer discretionary eked out a nearly 0.1% increase.
This week, investors will be closely watching the government’s monthly employment data to be released on Friday. Other economic reports due include March automotive sales and February construction spending, as well as factory orders.
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