US markets declined sharply on Wednesday, led by steep losses in technology stocks after the White House confirmed that President Donald Trump will unveil new auto import tariffs. The Nasdaq fell over 2% as chipmakers and megacaps reversed recent gains. Concerns over renewed protectionism, coupled with recession fears and weak consumer sentiment, weighed on risk appetite throughout the session. In the UK, inflation data surprised to the downside while Finance Minister Rachel Reeves delivered her Spring Budget, prompting a drop in gilt yields and a decline in sterling as investors increased bets on rate cuts from the Bank of England later this year.

Key Takeaways:

  • Tech Rout Sends Nasdaq Down Over 2%: The Nasdaq Composite fell 2.04% to close at 17,899.01, marking its worst single-day performance since early February. Shares of Nvidia dropped nearly 6%, while Amazon and Meta Platforms each fell more than 2%. Alphabet lost over 3%, and Tesla tumbled 5.6%, snapping a five-session winning streak.
  • S&P 500 Slides 1.12% as Tariff Fears Escalate: The S&P 500 closed at 5,712.20, down 1.12%, as renewed trade uncertainty weighed on sentiment. The index is now down over 1.7% for the week as rotation into lower-volatility names continues.
  • Dow Slips Over 130 Points as Investors Shift to Safety: The Dow Jones Industrial Average declined 132.71 points, or 0.31%, to end at 42,454.79. While the blue-chip index fared better than tech-heavy peers, broad market caution kept gains in check. 
  • European Markets Fall as Autos Weigh on Sentiment: European stocks closed lower on Wednesday, as investors grew increasingly nervous over potential US auto tariffs. The pan-European Stoxx 600 fell 0.7%, with the auto sector tumbling 2.6% — the worst-performing group of the day. France’s CAC 40 dropped 0.97%, while Germany’s DAX declined 1.14%, dragged lower by Volkswagen and BMW. Italy’s FTSE MIB also retreated 0.78%, while Spain’s IBEX 35 shed 0.65%. The UK’s FTSE 100 defied the regional trend, rising 0.30% as investors welcomed cooling inflation and a clearer fiscal roadmap from the Spring Budget. 
  • Asia Closes Higher on Hopes of Softer Tariffs and Regional Optimism: Asia-Pacific markets ended mostly higher on Wednesday. Japan’s Nikkei 225 rose 0.65% to close at 38,027.29, with the Topix up 0.55% as exporters rallied on a weaker yen. In South Korea, the Kospi advanced 1.08%, while the Kosdaq climbed 0.73% to 716.48. Hong Kong’s Hang Seng Index added 0.60% to finish at 23,483.32, supported by a rebound in tech shares, with the Hang Seng Tech Index rising 0.61%. Meanwhile, mainland China’s CSI 300 slipped 0.33% as gains in banking and energy shares were offset by weakness in consumer-related sectors. Australia’s S&P/ASX 200 gained 0.71% to close just below the 8,000 mark. In Thailand, the SET Index rose 0.62% after their Prime Minister survived a no-confidence vote, easing short-term political risk.
  • UK Inflation Cools to 2.8%, Gilt Yields Slide: The UK’s headline CPI rose 2.8% year-over-year in February, below expectations and down from January’s 3.0% reading. Core inflation also eased to 3.5%. Gilt yields declined by 3 basis points across the curve, as markets priced in higher odds of Bank of England rate cuts in the second half of the year.
  • US Consumer Confidence Hits 12-Year Low: The Conference Board’s expectations index plunged 9.6 points to 65.2 in March, its lowest level since 2013. Respondents cited worsening job prospects, income concerns, and market volatility as reasons for the sharp drop. The survey adds to mounting signs that consumer sentiment is turning decisively bearish.
  • Treasury Yields Tick Higher Amid Optimism: Yields moved modestly higher, with the 10-year rising 4 basis points to 4.352% and the 2-year adding 3.5 basis points to 4.019%. Despite weak data, investors held off from aggressive bond buying as they await clarity on tariff impacts and potential Fed policy shifts.
  • Oil Prices Climb on Supply Risks and Inventory Draw: Brent crude rose 1.19% to settle at $73.89 per barrel, while WTI gained 1.17% to finish at $69.81. EIA data showed US crude inventories fell by 3.3 million barrels last week, more than triple analyst expectations. Meanwhile, trade in Venezuelan oil was disrupted after Trump threatened sanctions on countries importing from Caracas, raising fears of tighter global supply.

FX Today:

  • EUR/USD Declines Toward Key Support as Correction Accelerates: The euro fell for a fourth straight session against the US dollar, with EUR/USD closing at 1.0752 after briefly testing lows near the 1.0740 handle. The pair remains caught in a downward correction after failing to sustain momentum above 1.0900 earlier this month. Wednesday’s decline brings price within striking distance of the 200-day simple moving average at 1.0729 — a level that previously acted as a launchpad for February’s rally. A confirmed break below the 1.0700–1.0730 zone would mark a significant shift in structure and put the 1.0650 level back in focus. Resistance overhead is seen at 1.0820, followed by stronger supply near 1.0880.
  • GBP/USD Weakens as Inflation Miss Fuels Rate Cut Bets: Sterling lost ground against the dollar, closing at 1.2889, after February CPI data came in softer than anticipated, triggering renewed speculation around the Bank of England’s next policy move. The pair attempted to build on earlier strength, trading near 1.2940 in early London hours, but came under pressure as the inflation print showed headline price growth slowing to 2.8% year-over-year. This sent gilt yields lower and dragged GBP/USD below the key 1.2900 psychological level. The pair is now approaching the 200-day SMA at 1.2800, which has acted as dynamic support throughout March. A daily close below this threshold would open the door toward 1.2700–1.2660. Any recovery attempt will likely encounter resistance near 1.2940, and only a break above 1.3000 would shift near-term bias back to the upside.
  • USD/JPY Advances Toward Resistance Zone as Trend Recovery Continues: USD/JPY rose to 150.55 by the close of Wednesday’s session, as the dollar continued to rebound against the yen amid steady gains in US Treasury yields and lingering safe-haven outflows from Japan. The pair has now rallied nearly 400 pips from its March lows near 146.50 and is entering a dense technical resistance band stretching from 151.00 to 152.00. This zone contains all three major moving averages — the 50-day, 100-day, and 200-day SMAs — making it a critical inflection point. The recent trend shift suggests that bullish momentum is building, but a failed breakout could reinforce the broader consolidation pattern that has dominated since mid-February. Initial support sits at 149.30, while a confirmed move above 151.80 would open the way for a test of the February high near 153.00.
  • Gold Holds Above $3,000 as Momentum Stalls Ahead of Resistance: Gold traded in a narrow range on Wednesday, finishing the session at $3,016.54, as traders weighed safe-haven demand against a modest dollar rebound following tariff headlines. Although upside momentum has cooled since the early-March surge past $3,050, the metal continues to hold comfortably above the $3,000 psychological threshold — a level that now serves as first key support. Technical structure remains bullish overall, with price still well supported by rising short- and medium-term moving averages. The 50-day SMA, currently at $2,887.45, provides a strong cushion on deeper pullbacks. For now, gold remains in a consolidation phase, with near-term resistance at $3,050 and upside potential toward $3,100 if bulls reclaim control. A close below $3,000, however, would shift attention toward the $2,950–2,920 support region.

Market Movers:

  • Akamai Technologies Plunges on Disappointing Revenue Forecast: Shares of Akamai Technologies dropped 21%, leading losses in the S&P 500 after the company issued a weaker-than-expected revenue outlook.
  • UnitedHealth Group Falls as DOJ Launches Medicare Billing Investigation: UnitedHealth Group slumped 7%, making it the worst performer in the Dow, after reports surfaced that the US DoJ has launched an investigation into the company’s Medicare billing practices.
  • Block Sinks After Weak First-Quarter Profit Guidance: Shares of Block nosedived 17% after the payment services company forecasted first-quarter gross profit of $2.32 billion, missing analyst expectations of $2.38 billion.
  • NU Holdings Slumps as Fourth-Quarter Net Income Misses Expectations: NU Holdings saw its shares plummet 18% after reporting fourth-quarter net income of $552.6 million, falling short of the consensus estimate of $566.4 million. The earnings miss, combined with weaker-than-expected customer acquisition growth, triggered a sharp sell-off.
  • Globant SA Crashes on Disappointing Revenue Outlook: Globant SA suffered a steep 27% decline after issuing first-quarter revenue guidance of $618 million to $628 million, significantly below analyst expectations of $637.8 million.
  • CrowdStrike Drops Following Reports of DOJ and SEC Investigation: Shares of CrowdStrike fell 6% after Bloomberg News reported that the US Department of Justice and the Securities and Exchange Commission are investigating a $32 million deal between CrowdStrike and a technology distributor for cybersecurity services to the Internal Revenue Service.

Stocks fell sharply on Wednesday as a mix of geopolitical tension, weak consumer sentiment, and tech-led volatility unsettled investors. President Trump’s looming tariff announcement added fuel to the sell-off, while markets remained cautious ahead of next week’s broader trade policy update. In the UK, cooler inflation data and the Spring Budget prompted rate cut speculation and pressured sterling. With defensive sectors gaining traction and macro headwinds building, investors will be watching closely for further policy signals from central banks and trade developments in the days ahead.