Day Traders Diary

3/10/25

The major averages took a hit today as the three-week sell-off intensified on Monday, with investors worried that tariff policy uncertainty would tip the economy into a recession, something President Donald Trump did not rule out over the weekend in an interview. The Dow Jones Industrial Average dropped 890 points, or 2.08%. The S&P 500 shed 2.6%. The tech-heavy Nasdaq Composite saw the biggest selling of the major averages, 727 points or 4%.

For the year and the market's highs, the S&P 500 is off by 9% from its high set on Feb. 19. The Nasdaq Composite is off by 14% from its recent highs. Small-cap benchmark Russell 2000 is off 18% from its high. The Dow is holding up the best, down just 6% from the highs.

The selling in the tech sector or the "Magnificent Seven" has been fierce with Tesla down 14%. Apple, Google Meta and Nidia all dropped 4% or more. AppLovin and Tesla are down 50% from their all-time highs not set that long ago.

Defensive stocks are holding up today with telecom stocks like AT&T and Verizon up a percent each. A number of drug stocks were higher today led by Bristol Myers up 3% today. A couple defense stocks, Lockheed and Northrop were higher today. Consumer durables like P&G, Colgate, Pepsi were all higher.

While the equity market was weak, bonds were calmer. The benchmark 10-year Treasury yield fell 9 basis points to 4.22%. The 2-year Treasury yield  dropped nearly 10 basis points to 3.90%. The price of oil fell a percent still near a six month low. Bitcoin took a hit down nearly 5% whipping out the rally since election day. Even gold was lower today as not much worked his Monday.