A market pullback refers to a temporary decline in the price of stocks or other assets during an overall upward trend. Typically lasting only a few sessions, pullbacks are often viewed by investors as opportunities to buy at lower prices before the uptrend resumes.

In March 2025, U.S. stock markets experienced significant pullbacks. The Nasdaq Composite dropped over 8%, marking its worst monthly performance since December 2022. The S&P 500 and Dow Jones Industrial Average also saw declines of 6.3% and 5.2%, respectively. These downturns were largely attributed to heightened trade tensions following the imposition of 25% tariffs on goods from Mexico, Canada, China, and all foreign-made automobiles, leading to widespread market uncertainty.

Despite the recent volatility, some analysts anticipate potential recovery, noting that April has historically been a favorable month for U.S. stocks. They suggest that the current bearish sentiment might present credible buying opportunities. However, uncertainties persist, particularly with the upcoming earnings season and the potential for continued volatility before the market stabilizes.