US Markets Correction: SP 500 Hits 5-Week Low

The US stock markets have experienced a significant decline, with the S&P 500 hitting a five-week low. Several factors contributed to this downturn. Weaker-than-expected consumer confidence data has weighed heavily on investor sentiment. The University of Michigan’s consumer sentiment index dropped to 64.7 in February, a nearly 10% decline, reflecting concerns about rising inflation and potential new tariffs.

Additionally, home sales in the US fell more than anticipated, reaching 4.08 million units last month. This decline in the housing market has further fueled worries about the overall economy. President Trump’s announcement that tariffs on imports from Canada and Mexico will go forward after the current 30-day moratorium expires has also added to market uncertainty.

The tech-heavy Nasdaq Composite felt the highest impact, falling 1.35%, while the S&P 500 lost 0.47%. Major US banks and tech giants like Nvidia and Tesla also suffered losses. Investors have turned to safer assets, causing a drop in US bond yields and a rise in gold prices.

Overall, the combination of weak economic data, trade tensions, and declining consumer confidence has led to a significant market downturn.