It’s been a brutal start to March as markets reverse their Trump-driven euphoria following the president’s recent tariff war escalation and fears over slower economic growth in the face of stubborn inflation.
Both the benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) have each erased their post-election gains, with the latter entering correction territory on Thursday after falling 10% from its record closing high of 20,173.89 on Dec. 16.
February’s jobs report, released Friday, offered some relief with the US economy adding 151,000 jobs, but it was still a brutal week for stocks. The S&P 500 capped off its worst week since September.
“It’s an uncertain time,” John Stoltzfus, chief investment strategist at Oppenheimer, told Yahoo Finance in an interview on Wednesday. “But gosh, we had the great financial crisis, we had COVID-19, we had the supply chain disruptions [coming out of that], and we did remarkably well.”
In other words, the stock market has remained resilient in the face of significant disruptions. And despite recent sell-off action, most strategists believe it will stay that way: Stoltzfus expects the S&P 500 to finish the year at 7,100, which implies about 25% upside based on current trading levels.
“Chaos creates opportunities,” added Dan Ives, global head of technology research at Wedbush. “[Buying the dip] has been our playbook for decades. The macro scares you and then you look back and say, ‘Why don’t I own the winners? Why don’t I own the dip?'”
But the dip has escalated quickly.
The S&P (^GSPC) has swung 2% over the past seven consecutive sessions after hitting a record high on Feb. 19. According to data compiled by Yahoo Finance, this was the longest such stretch in intraday moves for the benchmark index since August 2024 — the last time economists warned of a growth scare.
Prior to August, volatility swings of that level also showed up in March 2023, around the time of Silicon Valley Bank’s collapse.
Given these moves, some Wall Street watchers have said now is the time to take advantage of lower valuations, with the resiliency picture largely still intact.
“[Tariffs] add uncertainty,” Wedbush’s Ives said. “But in my opinion it doesn’t change the demand cycle. In other words, this is not going to end the tech bull market. It’s a scare. But I believe it’s more opportunities than the time to head for the hills.”
Read more: What Trump’s tariffs mean for the economy and your wallet
