Investor sentiment falls as stocks resume sliding

Investors are feeling as gloomy as consumers are.

The University of Michigan’s Survey of Consumers, which was released March 14, showed consumer sentiment plunging to its lowest since 2022.

Wall Street is in a similarly dour mood, according to the March editions of the Bank of America’s Global Fund Manager Survey and the CNBC Fed Survey. UCLA Anderson, an economic forecasting organization, also issued its first-ever “recession watch” warning on Tuesday.

That sinking feeling among survey respondents and forecasters was reflected in Tuesday’s sell-off, which dimmed hope — provided by a two-session winning streak on Friday and Monday — that the S&P and Nasdaq’s correction had run its course.

With market watchers expecting no cuts at the U.S. Federal Reserve’s meeting Wednesday, there seems little that can lift the mood in the economy and markets for now.

U.S. stocks resume sliding
The sell-off in U.S. stocks resumed Tuesday. The S&P 500 shed 1.07%, the Dow Jones Industrial Average lost 0.62% and the Nasdaq Composite fell 1.71%. Tesla shares slumped more than 5% after RBC Capital Markets lowered its price target on the stock. Asia-Pacific markets were mostly lower Wednesday. Japan’s Nikkei 225 fell about 0.2% as investors assessed the Bank of Japan’s meeting. Korea’s Kospi index, however, added around 0.7%.

Bank of Japan holds rates
The Bank of Japan on Wednesday kept its key policy rate steady at 0.5% in a unanimous vote, in line with market expectations. The country’s central bank warned of “high uncertainties surrounding Japan’s economic activity and prices” as well as “the evolving situation regarding trade,” which analysts see as a reference to U.S. President Donald Trump’s reciprocal tariffs set to come into effect April 2.

Choppy waters ahead: Surveys
Recent surveys show that trouble in the markets and economy is brewing. Respondents to the March CNBC Fed Survey raised the probability of recession to 36% from 23% in January. The UCLA Anderson Forecast, citing the Trump administration’s policies, issued its first-ever “recession watch” on Tuesday. Last, the Bank of America’s Global Fund Manager Survey showed the biggest pullback in overall investor sentiment since March 2020.

Nvidia announces new AI chips
Nvidia unveiled at its GTC conference Tuesday Blackwell Ultra, an upgrade of its current family of artificial intelligence chips, as well as Vera Rubin, the company’s next-generation graphics processing unit, that is expected to ship in 2026. At a separate announcement, General Motors and Nvidia said they are collaborating on using AI services for vehicles and driver-assistant systems.

Google to acquire Wiz
Google has signed a “definitive agreement” to acquire Wiz, a New York-based cloud security startup, for $32 billion in an all-cash deal, the tech giant announced Tuesday. The deal, Google’s largest ever, is expected to close in 2026. “It’s going to be a great litmus test and bellwether for M&A in 2025,” said Brad Haller, senior partner for mergers and acquisitions at consulting firm West Monroe. 

Trump, Putin agree on ‘narrow’ ceasefire
U.S. President Donald Trump and Russian President Vladimir Putin on Tuesday agreed on steps toward a peace deal to end the war in Ukraine, and struck a narrow ceasefire that is set to take effect at once. “We agreed to an immediate Ceasefire on all Energy and Infrastructure,” Trump wrote in a Truth Social post after his call with Putin, which lasted at least 90 minutes.

[PRO] U.S. Federal Reserve might not calm markets
The U.S. Federal Reserve on Wednesday will announce its monetary policy decision and release an update of its projections of where rates will be in the years ahead. But with the economy and markets on edge, the central bank may not have the information it needs to reassure investors — and might even spook markets further.

China is tackling weak consumption with child care subsidies

China is introducing child care subsidies to boost consumption. It aims to tackle the country’s rapid drop in births, while freeing up cash for discretionary spending. As with many Chinese policies, the plan released Sunday only lays out a framework: “Strengthen support for childbirth and raising children. Research and establish a system for subsidizing child care.” That’s according to a CNBC translation of the Chinese.

Beijing is moving relatively quickly, however. The National Health Commission is already drafting an operational plan for subsidizing child care, Li Chunlin, deputy director of the economic planner, the National Development and Reform Commission, told reporters Monday.