S&P 500 Winning Streak Is Over as Stock Market Feels Pressure
The stock market is experiencing slight decline, but it is still high overall, with many indices having regained considerable lost ground.
Quick overview
- The S&P 500's winning streak ended after six days, falling 0.39% due to tariff concerns and tech stock sell-offs.
- Despite the recent drop, the S&P 500 is still up 20% from the previous month and near record highs.
- The Dow Jones has recovered significantly, up 6.79% from last year, while the Nasdaq Composite is also showing signs of recovery.
- Ongoing tensions between the U.S. and China regarding tariffs and technology could impact market stability moving forward.
After six consecutive days, the S&P 500’s winning streak is over as the stock market takes a slight dive, brought on by tariff concerns and tech stock dumping.
The S&P 500 was on a hot streak, but that is over now, as the index fell 0.39% on Tuesday before trading was closed off. The Nasdaq Composite fell too, losing 0.27%, and the Dow Jones dropped 0.74%. After days of positive reports, the stock market indices are losing momentum and could be preparing for a bearish period.
Despite the drop yesterday, the stock market is still high. The S&P 500, in fact, is up 20% from the previous month and is very close to its record high level. Since President Donald Trump suspended some of the toughest tariffs, the stock market has been on a meteoric rise, and it is only now slowing down, so the overall health of the markets is great.
The Dow Jones Climbed out of a Hole
The Dow is in a good place as well, up 6.79% from where it was last year. Even though some of the early months of 2025 were filled with uncertainty and fear over tariffs, the Dow Jones index is relatively high and has managed to make back much of the ground it lost due to those tariffs. The index is also very close to where it started off 2025.
The Nasdaq Is Nearly Back to Its 2025 Starting Position
The stock markets jumped when Trump was elected President, and they jumped again when he took office, but then fell off when tariffs were announced. The Nasdaq Composite fell an additional 0.22% on Wednesday as the market opened. At the beginning of 2025, the Nasdaq index hit 19,480 points. It is now down to 19,091, having gained back much of what it lost after tariffs drained much of its value. It was just last month that the Nasdaq Composite fell to 15,267, so the index has made plenty of upward progress since then and is well situated to climb higher soon.
Our Stock Market Outlook
We expected the markets to lose some of their steam this week as the tariff pause becomes old news. Relations between the United States and China are still shaky after their escalating trade war resulted in a temporary truce. Now, China is threatening to levy legal action against anyone who participates in the United States’ block on chips from Huawei Technologies. This issue could put the two countries against one another again as China is heavily invested in keeping its country at the forefront of AI technology while the United States is concerned about China overtaking it in the AI tech race.
This issue could escalate the trade war again, and investors should be paying close attention to the story as it develops. However, the stock market could easily shoot up again this week so long as tariffs remain on pause.
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