The stock market faced its worst weekly decline in six months amid tariff whiplash.
Uncertainties around trade policy and economic forecasts drove investors into risk-off mode this week.
These four charts help show the increased volatility seen in markets.
The stock market just capped off its worst weekly decline in six months as investors dealt with the political realities of President Donald Trump’s administration.
Uncertainties related to tariffs, the federal government’s DOGE-induced layoffs, and Treasury Secretary Scott Bessent’s forecast of a «detox period» for the US economy drove investors into risk-off mode.
The Nasdaq 100 briefly dipped into correction territory on Friday, falling 10% from its mid-February high, and is down more than 3% this week, along with the S&P 500.
These four charts help explain this week’s action in markets.
The S&P 500 experienced its worst weekly decline since early September, when the index dropped 4.3% following a weaker-than-expected August jobs report.
Of note, the index tested its 200-day moving average this week for the first time since November 2023. It’s a key technical threshold that could signal more pain to come if it trades decisively lower.
Semiconductor stocks cratered this week, with Nvidia dropping 10%, extending its decline to its lowest level since September. Shares of the top chipmaker have seen $1 trillion in market capitalization wiped out since peaking in early January.
The sell-off was exacerbated by earnings results and a weaker-than-expected outlook from Marvell Technology, which is exposed to the fast-growing AI sector.
A bright spot on Friday was Broadcom stock, which rose 8% amid strong guidance that kept investors’ hopes for the AI trade alive.
The tariff uncertainty contributed to the downside volatility in the US dollar this week.
The US dollar index, which measures the dollar against a basket of other major currencies, declined more than 3%, its biggest weekly drop since November 2022.
That’s been the opposite of what markets expected, as inflationary pressure of tariffs was predicted to keep rates high and boost the currency. Instead, headwinds to growth and questions around the «US exceptionalism» trade have caused the dollar to dip versus rivals.
Trump pushed ahead with tariffs on goods from Mexico and Canada only to exempt items covered by the USMCA trade agreement at the last minute.
On Friday, Trump said reciprocal tariffs could be enacted as soon as this week, or early next week.
The 10-year US Treasury yield surged 20 basis points since Tuesday, and is up 11 basis points for the week.
