US Stocks, Bitcoin, and Oil Prices Plunge: What’s Behind the Market Turmoil?

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The global financial markets experienced a sharp downturn on March 3, as U.S. equities, major tech stocks, cryptocurrency, and crude oil prices all suffered significant losses. At the center of the storm was NVIDIA, which plunged nearly 9%, dragging down the broader tech sector. Simultaneously, Bitcoin dropped below $87,000, while oil prices hit their lowest levels of the year. In contrast, gold prices surged, signaling a clear shift toward safe-haven assets.

But what triggered this synchronized market sell-off? The answer lies in a combination of escalating trade tensions, shifting energy policies, and rising inflation concerns—all converging at a critical moment for investors.

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Market Meltdown: Tech and Crypto Lead the Decline

On March 3, U.S. stock markets closed sharply lower, with all three major indices posting notable losses. The Dow Jones Industrial Average fell 1.48% to 43,191.24 points, while the S&P 500 dropped 1.76% to 5,849.72. The Nasdaq Composite was hit hardest, sliding 2.64% to 18,350.19—its worst performance in weeks.

The sell-off was led by technology giants. The WIND U.S. Tech "Magnificent Seven" Index tumbled 3.42%, reflecting broad-based weakness across high-growth stocks. NVIDIA bore the brunt, falling 8.69%, with intraday losses briefly exceeding 10%. Other tech heavyweights also declined: Amazon dropped over 3%, Tesla nearly 3%, and both Microsoft and Google fell more than 2%. Even Apple, often seen as a market stabilizer, lost over 1%.

Semiconductor stocks were especially hard hit. The Philadelphia Semiconductor Index sank 4.01%, with ARM down more than 8%, Marvell Technology and Broadcom each losing over 6%, and Intel shedding more than 4%.

Market analysts point to renewed trade policy uncertainty as a key driver behind the tech selloff.

Trump’s Tariff Threat Sparks Global Trade Fears

A major catalyst for the market downturn was former President Donald Trump’s announcement that his proposed 25% tariffs on imports from Mexico and Canada would take effect on March 4.

Speaking at the White House, Trump reiterated his stance that both countries must build automotive and manufacturing facilities in the U.S. to avoid the new tariffs. He also confirmed that so-called “reciprocal tariffs”—a policy requiring foreign nations to match U.S. tariff rates—would be implemented starting April 2.

This marks an escalation of trade tensions not seen since before the pandemic. Trump initially signed an executive order on February 1 imposing the 25% tariffs, with a reduced 10% rate on Canadian energy products. After a 30-day delay for negotiations, the measures are now set to proceed.

Economists warn that such policies could disrupt North American supply chains and reignite inflationary pressures.

Chris Rupkey, Chief Economist at Fwdbonds, noted: “It remains to be seen whether U.S. markets can withstand these trade shocks. Tariffs invariably lead to higher costs and reduced efficiency.”

Similarly, Chris Scicluna of Daiwa Capital Markets emphasized that “policy uncertainty surrounding trade is dampening business investment and spending decisions,” while also contributing to elevated inflation expectations.

👉 Learn how macroeconomic shifts influence digital asset valuations in real time.

Inflation Signals Flash Red as Manufacturing Data Stalls

Adding fuel to market anxiety was the latest data from the Institute for Supply Management (ISM), which showed U.S. manufacturing activity barely expanding in February.

The ISM Manufacturing Index dipped 0.6 points to 50.3, indicating minimal growth—the weakest reading in months. More concerning was the Prices Paid Index, which surged 7.5 points to 62.4, the highest level in over two years. This metric tracks what manufacturers pay for raw materials and is a leading indicator of consumer inflation.

A rising Prices Paid Index suggests that input costs are accelerating, which businesses may pass on to consumers—potentially reigniting inflation just as the Federal Reserve considers rate cuts.

The combination of weak output growth and rising input prices paints a picture of stagflationary risks, a scenario that historically pressures equity markets and boosts demand for non-yielding assets like gold.

Oil Prices Sink Amid OPEC+ Production Shifts

Commodity markets mirrored equity trends, but with diverging outcomes across asset classes.

Crude oil prices hit their lowest levels of 2025 after OPEC+ announced plans to gradually increase production starting in April. The group will raise output by 138,000 barrels per day in April, marking its first monthly production hike in over two years. The plan aims to restore a total of 2.2 million barrels per day by 2026.

The decision comes amid growing concerns about global oversupply, especially as Trump has publicly urged OPEC to lower oil prices to ease pressure on American consumers.

With demand growth uncertain and inventories rising, traders fear that increased supply could outpace consumption, leading to further price declines.

Bitcoin Crashes Below $87K as Risk Appetite Evaporates

The cryptocurrency market saw one of its most volatile days in recent months. On March 4, Bitcoin plummeted over 8%, briefly dipping below $87,000—erasing billions in market value within hours.

According to data from crypto analytics platforms, more than 230,000 traders were liquidated in the past 24 hours, with total losses exceeding $500 million across major exchanges.

The selloff affected nearly all major digital assets. Ethereum, Solana, and Binance Coin all registered double-digit percentage declines during the session.

Market analysts attribute Bitcoin’s drop to a broader retreat from risk assets. With equities falling and trade war fears resurfacing, investors flocked to traditional safe havens like gold rather than volatile cryptocurrencies.

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Gold Shines as Investors Seek Shelter

In contrast to falling stocks and crypto, gold prices soared on March 3.

Spot gold rose 1.25% to close at $2,893.46 per ounce**, while COMEX gold futures jumped **2.02%** to $2,906.10. Silver also gained strength, with spot silver up 1.73% and COMEX futures climbing 2.46%**.

Copper edged higher by 0.62%, suggesting some residual industrial demand despite economic headwinds.

Gold’s rally reflects classic risk-off behavior: when uncertainty rises, investors turn to assets with intrinsic value and no counterparty risk.

With inflation signals flashing red and geopolitical tensions simmering, gold may continue to outperform in the near term.

FAQ: Understanding the Market Sell-Off

Why did NVIDIA drop nearly 9%?

NVIDIA’s decline was driven by broad tech sector weakness amid fears that new tariffs could disrupt global supply chains and reduce demand for AI-related hardware.

Are tariffs really inflationary?

Yes. Tariffs increase import costs, which businesses often pass on to consumers—leading to higher prices and sustained inflation pressures.

Why did Bitcoin fall so sharply?

Bitcoin is increasingly correlated with tech stocks and risk sentiment. When equities sell off due to macroeconomic fears, crypto often follows.

Is gold likely to keep rising?

Given rising inflation expectations and global uncertainty, gold remains a strong hedge. Many analysts project it could reach $3,000 per ounce in 2025 if volatility persists.

Could OPEC+ reverse its production plans?

Possibly. If oil prices fall too quickly or demand weakens further, OPEC+ may delay or scale back planned increases at future meetings.

What should investors do during such volatility?

Diversify across asset classes, consider hedging strategies like options or gold exposure, and avoid emotional trading decisions during sharp market swings.

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