State Of The Stock Market - March 2025

Published first at https://www.3minutebreakdowns.com What's next for the stock market? March 2025. US stock markets have entered correction territory. The S&P 500 index is down 10% over the past month, the Nasdaq 100 has fallen 14% and the Russell small cap index has fallen 19%. Some of the hardest hit stocks include The Trade Desk, down 62%, restaurant business Cava down 57% and Robinhood which has fallen 46%. And there are two key reasons for the volatility. The first is that coming into the year US stock markets were already extremely expensive. The Shiller PE ratio was at 36 and the market cap to GDP indicator was at levels last seen during the dotcom bubble. Warren Buffett’s cash pile had soared to over 300 billion.. The second reason is economic uncertainty caused by the new US Government. President Trump has installed tariffs on most of America’s trading partners, stirred geopolitical tensions with Europe and, aided by billionaire Elon Musk, begun cutting federal spending and government jobs.