U.S. stocks saw a sharp selloff on Monday, March 10, with the S&P 500 dropping 2.7%, bringing its year-to-date decline to 4.3%. The Nasdaq composite suffered an even steeper fall, plunging 4% and now down 9.4%. 

The Dow Jones Industrial Average slid 2.1%, while small-cap stocks—represented by the Russell 2000—declined 2.7% on the day. In fixed income, U.S. 10-year Treasury yields fell 8.6 basis points, hitting their lowest level since December 2024.

On Tuesday, U.S. stocks closed lower under investors’ considerations of economic uncertainties and global tariff concerns. The S&P 500 fell 0.8%, briefly touching a 10% decline from its February all-time high. 

The Dow slid 1.1%, while the Nasdaq dipped 0.2%. Small caps showed some resilience, with the Russell 2000 rising 0.2%. Bond markets reflected shifting sentiment, as the U.S. 10-year Treasury yield climbed to 4.3%, while the U.S. 2-year yield fell to 3.9%, its lowest since October 2024.

U.S. stocks rose on Wednesday following an optimistic inflation report and a trade skirmish with Canada, with the S&P 500 rising 0.5% and the Nasdaq climbing 1.2%. The Dow dipped slightly by 0.2%, while small caps saw modest gains as the Russell 2000 edged up 0.1%. The Consumer Price Index rose 2.8% in the past 12 months, 0.2% lower than expected.

On Thursday, U.S. stocks fell sharply as market sentiment continued to worsen. The S&P 500 dropped 1.4%, now down 10% from its mid-February all-time high, marking its first correction in a year. 

The Dow declined 1.3%, extending its losing streak to four consecutive sessions, while the Nasdaq slid 2% amid general uncertainty in tech. The U.S. 10-year Treasury yield declined to 4.3%, as investors rotated into bonds.

Stocks recovered on Friday following a week of volatility, with the S&P 500 jumping 2.1% and the Nasdaq soaring 2.6%, marking their best daily performance in March. The Dow climbed 1.7%, while small caps joined the rally, with the Russell 2000 rising 2.5%. 

Bond markets reflected shifting expectations, with the U.S. 2-year yield climbing back above 4% for the first time this month. Meanwhile, the U.S. 10-year Treasury yield increased to 4.3%.

The week demonstrated extreme volatility due to uncertainty around trade tariffs and new administrative policy, with major indexes seeing a correction. 

As the economic landscape continues to be guided by this uncertainty, investors must stay vigilant and diversify their portfolios to best position themselves for an unpredictable market environment.