*

S&P, Nasdaq post worst month since December 2022

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Biggest quarterly pct falls: S&P since Q3 2022, Nasdaq Q2

2022

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Uncertainty over Trump tariffs weigh on markets in first

quarter

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Trump to announce extensive tariffs on Wednesday

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On Monday: Dow up 1%, S&P 500 up 0.55%, Nasdaq down 0.14%

(Recasts with quarterly performance, adds closing prices)

By David French

March 31 (Reuters) - The S&P 500 and the Nasdaq

Composite posted on Monday their worst quarterly performances

since 2022, as uncertainty around the Trump administration's

economic agenda roiled U.S. equity markets in the first quarter

of 2025.

The two benchmarks also suffered heavily in March, recording

their biggest monthly percentage drops since December 2022, as

President Donald Trump rolled out a swathe of new tariffs which

raised fears of a global trade war that would hurt economic

growth and spur inflation.

For the quarter, the S&P 500 slumped 4.6%, while

the Nasdaq Composite plummeted 10.5%. The Dow Jones

Industrial Average was not immune to the unease, slipping

1.3% in the opening three months.

"Investors, more or less in this first quarter, threw their

hands in the air, as you really cannot trade around this," said

Adam Turnquist, chief technical strategist for LPL Financial.

The Magnificent Seven technology names, which drove markets

higher over a bull market which stretched through 2023 and 2024,

weighed heavily on U.S. equity markets as investors sold off

growth names.

Tesla was down almost 36% in the first quarter, and Nvidia

dropped nearly 20%.

"Our big lesson from the first quarter is diversification is

not dead," said Michael Reynolds, vice president of investment

strategy at Glenmede.

"Whether you're looking between, or within, asset classes,

if you avoided the perils of market concentration, you actually

held up quite a bit better versus some of the headline indexes."

While information technology and consumer

discretionary - both sectors with heavy influence from

big-tech names - posted double-digit percentage declines for the

quarter, a majority of the 11 S&P sectors were higher in the

same period, led by energy's 9.3% increase.

On Monday, both the S&P 500 and the Dow temporarily shook

off the uncertainty around the Trump administration's upcoming

tariff plans, which are expected to be outlined in greater

detail on Wednesday.

Trump said on Sunday that expected tariffs he is set to

announce will include all nations. He has already imposed

tariffs on aluminum, steel and autos, along with increased

tariffs on goods from China.

The S&P 500 gained 30.91 points, or 0.55%, to

5,611.85 points, and the Dow Jones Industrial Average

rose 417.86 points, or 1%, to 42,001.76. The Nasdaq Composite

lost 23.70 points, or 0.14%, to 17,299.29. The

Financial stocks helped boost the S&P 500 on Monday. Both

Discover Financial Services ( DFS ) and Capital One Financial ( COF )

advanced, up 7.5% and 3.3% respectively, as investors

bet their merger would ultimately be approved by regulators.

The S&P 500 consumer staples index, often

considered a safe haven within stock markets, was the leading

sector though with its 1.6% increase. Energy also rose, tracking

a jump in crude prices.

The CBOE Volatility Index, Wall Street's so-called

fear gauge, jumped to a two-week high at 22.28 points.

As a result of tariff uncertainties, Goldman Sachs raised

the probability of a U.S. recession to 35% from 20%, cut its

year-end target for the S&P 500 to 5,700, and forecast more

interest rate cuts by the Federal Reserve.

Focus this week will also be on economic data, including ISM

business activity surveys and the crucial non-farm payrolls

report. Also due this week are speeches from several U.S.

central bank officials, including Fed Chair Jerome Powell.

Drugmakers' shares slid after reports the U.S. Food and Drug

Administration's top vaccine official had been forced to resign.

Moderna ( MRNA ) dropped 8.9%.

Gene therapy companies Taysha Gene Therapies ( TSHA ) and

Solid Biosciences ( SLDB ) fell 28% and 14.4%, respectively.

In deals news, Rocket Companies ( RKT ) was down 7.4% after

the mortgage lender said it agreed to a $9.4 billion acquisition

of Mr. Cooper Group ( COOP ). The announcement, though, sent the

mortgage servicer's stock up 14.5%.