Wall Street Plummet as Market Sentiment Shift

• Wall Street faced a massive selldown in the last session as the market navigated Trumps trade policies worries.

• The U.S. dollar remains lacklustre as the market is concerned that U.S. government spending cuts would harm the countrys economic growth.

• Safe-haven currencies like Japanese Yen and Swiss Franc are sought after amid heightened market uncertainty.

Market Summary

U.S. equities suffered a sharp selloff in the last session, with all three major indices closing significantly lower. The Nasdaq led the decline, plunging 4% below the 18,000 mark, as concerns over Trumps trade policies and the potential for escalating trade tensions rattled investors.

Adding to market unease, Elon Musk‘s DOGE-backed economic advisory group has been lobbying for government spending cuts, raising fears of a broader economic slowdown. Meanwhile, U.S. Treasury yields continued to decline, weighing on the U.S. dollar, which has been consolidating since last Friday. Investors are now turning their focus to tomorrow’s U.S. CPI data, which could provide fresh direction for the greenback.

Safe-haven assets outperformed amid heightened market uncertainty, with both the Japanese yen and Swiss franc strengthening. In commodities, gold traded steady, while oil prices extended losses, plunging to fresh lows as concerns over a deteriorating global economic outlook deepened.

The risk-off sentiment also weighed on cryptocurrencies, with Bitcoin (BTC) sliding below the $80,000 mark for the first time since Trumps election victory in November. Ethereum (ETH) also broke below its critical $2,000 support level, signaling further weakness in the digital asset market.

Current rate hike bets on 19th March Fed interest rate decision:

Source: CME Fedwatch Tool

0 bps (95%) VS -25 bps (5%)

Market Movements

DOLLAR_INDX, H4

The Dollar Index remains subdued following last Friday‘s weaker-than-expected U.S. jobs report, as multiple factors continue to pressure the greenback. Investor scepticism over Trump’s trade policies has added to the bearish sentiment, with concerns mounting over the administration‘s push for government spending cuts, which could further slow economic growth. With the U.S. dollar struggling to find support, market participants are now turning their attention to tomorrow’s CPI release, which could provide fresh direction for the currency and broader market sentiment.

The Dollar Index trades sideways, followed by a bearish trend, signalling a potential technical rebound for the index. The RSI has gained to above the oversold zone, while the MACD has a golden cross at the bottom, suggesting that the bearish momentum is easing.

Resistance level: 105.45, 106.50

Support level: 102.55, 101.35

XAU/USD, H4

Gold, a traditional safe-haven asset, also faced an unexpected selloff despite broader market turmoil. Instead of benefiting from risk-off sentiment, gold came under pressure as institutional investors liquidated positions to raise cash and meet margin calls, triggering a decline across multiple asset classes.

Gold prices are trading higher while currently testing the resistance level. MACD has illustrated increasing bullish momentum, while RSI is at 50, suggesting the commodity might extend its gains after breakout since the RSI rebounded sharply from oversold territory.

Resistance level: 2900.00, 2925.00

Support level: 2870.00, 2835.00

NASDAQ, H4

The global equity market suffered a sharp selloff, with tech stocks leading the decline as the Nasdaq plunged nearly 4%—its steepest drop since 2022. Investor sentiment deteriorated amid escalating concerns over Trump‘s tariff hikes, spending cuts, and widening budget deficits, compounded by geopolitical tensions and trade war fears. Wall Street’s fear gauge surged, signaling heightened uncertainty. This downturn starkly contrasts the initial optimism surrounding Trumps presidency, when expectations of tax cuts and deregulation fueled market gains, but recent policy turmoil has eroded those hopes.

Nasdaq is trading lower while currently testing the support level. MACD has illustrated increasing bearish momentum. However, RSI is at 29, suggesting the index might enter oversold territory.

Resistance level: 19900.00, 20550.00

Support level: 19355.00, 18405.00