Today's War Room Trading Recap

On Thursday, March 6, 2025, U.S. stock markets experienced a significant selloff driven by escalating trade tensions and investor uncertainty. The S&P 500 declined by 1.8%, the Dow Jones Industrial Average fell 1%, and the Nasdaq Composite dropped 2.6%, entering correction territory—defined as a decline of 10% or more from its recent peak. The primary catalyst for this downturn was President Donald Trump’s announcement of new 25% tariffs on imports from Mexico and Canada. Although a temporary one-month exemption was later granted for certain goods under the U.S.-Mexico-Canada Agreement (USMCA), the inconsistent policy approach heightened market volatility and investor anxiety.

Notably, stocks that had previously shown resilience to market fluctuations were also affected. For instance, Nvidia’s shares fell by 5.7%, while Broadcom and Tesla experienced a decline of 6.3% and 5.6% respectively. Other major technology companies, including Apple, Microsoft, and Alphabet, also faced losses, underscoring the widespread impact of the sell-off. 

The semiconductor sector was particularly hard-hit, with Marvell Technology’s stock plummeting nearly 20% following earnings results that failed to meet heightened investor expectations. This sector’s sensitivity to trade policies and global supply chain disruptions contributed to its pronounced decline.

In summary, the March 6 selloff was primarily driven by escalating trade tensions and policy uncertainties, leading to significant declines across major stock indices and affecting even those stocks previously considered robust against market downturns.