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31.03.2025 12:16 PM
US Market News Digest for March 31

Markets under pressure: stocks tumble as recession fears mount

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The US market kicked off the week with a broad-based sell-off, driven by rising talk of retaliatory trade tariffs and deteriorating consumer confidence. Investors are bailing out of stocks en masse on fears that the White House could impose new import tariffs. This has triggered a spike in volatility and raised the risk of a sharp correction in the S&P 500. Selling is concentrated in economically sensitive sectors, including industrials and autos.

Traders should exercise particular caution: current levels could either signal the beginning of a deeper decline or mark a potential bounce point. It is crucial to watch how the index reacts around key support levels. If a deeper pullback occurs, short-term trades may be in play. If the market stabilizes, this could present opportunities to enter high-potential names at lower prices. We offer the perfect tools: tight spreads, low fees, and seamless access to US equities. Follow the link for details.

Indices slide on inflation concerns and stagflation risk

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The S&P 500 fell 2%, and the Nasdaq lost nearly 3%. The main drivers were growing fears of accelerating inflation and slumping consumer confidence. Further pressure came from headlines suggesting that new auto tariffs could be on the way. Donald Trump is signaling a sharp tightening of trade policy, which markets are treating as a threat to stability.

The release of the core PCE index confirmed that inflation remains elevated. This raises the risk of stagflation — a mix of rising prices and declining economic activity. For traders, this environment calls for caution. Short-term opportunities may exist in defensively positioned sectors. And market dips could offer attractive entry points in fundamentally strong names. Follow the link for details.

S&P 500 back near one-year lows as market awaits Fed action

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US stock indices have once again approached their lowest levels of the year. Pressure is mounting amid rising trade tensions. Many asset managers have started to reduce their equity exposure, impacting market liquidity and adding to volatility. Against this backdrop, Goldman Sachs now expects the Federal Reserve to cut interest rates three times through 2025, citing a worsening economic outlook due to escalating trade restrictions.

The market is unstable right now, but these are often the conditions that provide strong entry points. It is critical to trade based on technical levels, follow clear signals, and manage risk carefully. If the Fed begins a policy easing cycle, this could support the market and spark a rebound. Trading US stocks becomes especially attractive when combined with low commissions and tight spreads. Follow the link for details.

Global markets in disarray: investors flee to gold and yen on tariff fears

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Global markets are reeling from the escalating trade war. The United States is stepping up pressure through tariffs, prompting investors to shift out of equities and into safe-haven assets. Gold prices are climbing, and demand for the yen is increasing. In this environment, Goldman Sachs has raised its probability of a US recession, citing weak consumer activity, stubborn inflation, and aggressive trade policies.

The market is moving in sharp bursts. For short-term traders, this is fertile ground for capturing volatile swings. For medium-term investors, it is important to watch how the market behaves after periods of peak selling. A reversal signal may be just around the corner. Follow the link for details.

Irina Maksimova,
Pakar analisis InstaForex
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