TechFlow news, on March 10, the U.S. stock market suffered a sharp decline, with technology stocks recording their largest drop since 2022. The Nasdaq 100 Index plunged nearly 4%, wiping out more than $1 trillion in market value. The S&P 500 fell 2.7%, closing below its 200-day moving average for the first time since November 2023, ending a streak of 336 consecutive trading days above this threshold.
Crypto-related stocks declined even more sharply: Strategy dropped 16.68%, Coinbase fell 17.58%, Hut 8 declined 15.03%, and Canaan Creative sank 14.17%. Tesla's share price tumbled 15.4%, widening its year-to-date loss to 45%. Bitcoin prices dropped to a four-month low, bond offerings were canceled, and Wall Street's fear index surged.
Market concerns are mounting that the Trump administration’s tariff policies, spending cuts, and geopolitical uncertainties could stall the U.S. economy. Recently, Trump warned Americans they might feel "a little discomfort" due to the trade war and refused to rule out the possibility of an economic recession, triggering investor panic. Deutsche Bank data shows equity positioning in U.S. stocks is now slightly below neutral—the first time since August last year. A Goldman Sachs report indicates hedge funds are aggressively unwinding positions, with the long-short equity ratio falling to its lowest level since 2019.
Investors are fleeing risk assets and shifting into defensive sectors such as energy, consumer staples, and utilities. U.S. Treasury yields have sharply declined, with the two-year yield dropping about 11 basis points. Wall Street strategists and economists have begun raising their probability forecasts for a U.S. recession, and the market broadly expects further declines ahead.
