NEW YORK, March 10 (Reuters) - Major U.S. stock indexes
sank on Monday after U.S. President Donald Trump declined to
predict whether his tariff policies could lead to a recession,
roiling investor sentiment.
The Nasdaq Composite slumped almost 4% after moving
into a correction last week. The S&P 500 slid 2%, and the index
is now about 8% down from its all-time high from February 19.
Below are investor and analyst comments about the
selloff.
ROSS MAYFIELD, INVESTMENT STRATEGIST, BAIRD, LOUISVILLE,
KENTUCKY
"The Trump administration seems a little more accepting of
the idea that they're OK with the market falling, and they're
potentially even OK with a recession in order to exact their
broader goals. I think that's a big wake-up call for Wall
Street. There had been a sense that President Trump kind of
measured his success on stock market performance, there was even
somewhat of a 'Trump put' so to speak, and I think we're seeing
that's not the case, so the market is starting to reflect that
reality."
"(Tech stocks have) very extended valuations trading at
pretty big premiums to the broader market. So you're bound to
have some air pockets, and technically they don't look great.
There could be more weakness to come over the near term, but I
would definitely be buying these high quality growth companies
on the dip."
"One place we're having to revisit is my preference for US
(stocks) over international. The pressure that the Trump
administration is putting on foreign governments... has
actually, in a lot of cases, resulted in outperformance from
those countries (such as) China and Europe. That's a place we're
revisiting to decide if we think it's something more structural
or just a short term trade."
AYAKO YOSHIOKA, SENIOR INVESTMENT STRATEGIST, WEALTH
ENHANCEMENT, LOS ANGELES
"We've seen clearly a big sentiment shift. And part of this
is just a result of the momentum that we had seen in many of the
growth stocks over the last two years. They're all sort of
falling a lot more so than everything else. And a lot of what
has worked is not working now. I think there was just a reason
to take some chips off the table. The uncertainty going forward
clearly keeps people a little bit more nervous about the
trajectory of the market path."
ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH
"The narrative changes on a daily basis around
tariffs--that's what causing all this uncertainty. The damage
around markets that has everything to do with sentiment is
reflected more in the Nasdaq, because technology stocks are
certainly more influenced by risk sentiment. De-risking also
tends to take you out of the high beta names which are in the
Nasdaq. Today is no different."
CHRIS ZACCARELLI, CHIEF INVESTMENT OFFICER, NORTHLIGHT ASSET
MANAGEMENT, CHARLOTTE, NC
"The NASDAQ has been risk-off all year long. Today isn't
anything new from what we've seen for the last couple of weeks,
but it is a continuation of what we've been seeing. And so
that's just the unfortunate combination of very high valuations
which is where we started the year and then increased
uncertainty."
THOMAS HAYES, CHAIRMAN AT GREAT HILL CAPITAL LLC
"If you want to know what's going on with the U.S. market,
stop paying attention to tariffs and start paying attention to
Japanese government bond yields. The carry trade is unwinding,
and all that hot money was in Mag 7. So that's why tech is
down."