Mar 13, 2025 - Business
S&P 500 selloff hits correction territory amid tariff fears
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The S&P 500 entered correction territory Thursday, closing more than 10% below the all-time high the index hit in mid-February.
Why it matters: Less than two months into the second Trump presidency, markets are telling the administration they're concerned about the impact of tariffs and rising odds of a recession.
By the numbers: The S&P closed at 5521, 10% below the Feb. 19 record of 6,144.15.
- Over the last month, it's one of the world's worst-performing major indices.
- The Nasdaq composite — which already entered correction territory a few days ago — ended sharply lower, as did the Dow Jones industrial average.
The intrigue: As opposed to the "Trump put" of his first presidency, where negative market moves could affect policy, this time around the administration insists it's less concerned about stocks.
- "I'm not concerned about a little bit of volatility over three weeks," Treasury secretary Scott Bessent said on CNBC Thursday. "We are really focused on the medium to long term."
What to watch: How quickly the markets can bounce back.
- Corrections, no matter the reason, are fairly common.
- On average, it takes markets about three months to bounce back from a decline of 5% to 10%, per Invesco data.
