The first week of March wasn't exactly a bed of roses for the S and P 500. The index took a nosedive, slipping 3.1% as investors fretted over looming tariffs and a jobs report that didn’t quite hit the mark. Honestly, it’s like watching your favorite sports team lose three games in a row—it’s painful! The S&P 500 closed the week at 5,770.20, making it the third straight week of declines. Ouch!

What's Got Investors Worried?

Two words: Tariffs and Jobs. The Trump administration announced it would impose 25% tariffs on Mexico and Canada, though they decided to delay some by a month. It's like they’re playing a game of peek-a-boo with our nerves. On top of that, job cuts are happening left and right as the Department of Government Efficiency sharpens its scissors. The February jobs report didn't help either, showing a rise of just 151,000 nonfarm payrolls—fewer than the 160,000 expected. Meanwhile, the unemployment rate ticked up to 4.1% from 4%.

The tariffs have cast a long shadow over investor sentiment. The uncertainty surrounding trade relations with Mexico and Canada is reminiscent of the trade spats of the past, which have historically led to market volatility. Investors are concerned about the ripple effects these tariffs might have on the broader economy, particularly in sectors heavily reliant on international trade. For instance, the automotive and manufacturing industries are likely to feel the pinch as increased tariffs could lead to higher production costs and, consequently, higher prices for consumers.

The jobs report added fuel to the fire. While job creation is still positive, the slower-than-expected growth in nonfarm payrolls suggests that the labor market might not be as robust as previously thought. This slowdown is particularly concerning amidst fears of an economic downturn.

All but one sector of the S & P 500 fell this week. Financials bore the brunt with a 5.9% plunge, closely followed by consumer discretionary, energy, and technology. It’s like the financial sector is on a diet, shedding pounds faster than you can say "convertible preferred stock."

Sector Breakdown: Who's Winning, Who's Losing

Financials: The big loser here, sliding 5.9%. KKR was hit hardest, falling 15% after pricing a sizable share offering. If there's one thing to learn here, it's that not all publicity is good publicity. The financial sector's performance is often seen as a barometer for overall economic health, and this week's decline is particularly worrisome. Financial institutions are grappling with the dual challenges of adapting to a changing interest rate environment and navigating the complexities introduced by new tariffs.

Consumer Discretionary: Down 5.4%. Best Buy CEO Corie Barry is waving the red flag, warning of price hikes due to tariffs. It’s like getting a heads-up that your favorite pizza place is raising prices. Consumer discretionary stocks are often sensitive to economic cycles, and the current climate of uncertainty is causing investors to shy away from these stocks. Retailers, in particular, are under pressure as they balance the need to maintain competitive pricing with rising costs.

Energy: Dropped 3.8%. The decline in crude oil futures didn't do the sector any favors. Diamondback Energy lost 12% as it priced a debt offering to raise $1.2 billion. Looks like energy's not the place to find your market sunshine this week. The energy sector is also contending with broader geopolitical tensions, which are affecting oil supply and prices. The ongoing discussions about renewable energy and climate change initiatives add another layer of complexity for traditional energy companies.

Technology: Down 3.4%. Hewlett Packard Enterprise shares shed 20% after issuing a less-than-stellar profit guidance. They’re also planning job cuts to save some cash. It’s like trimming the fat, but with jobs. The technology sector, often a market darling, is experiencing a reality check. Companies are facing increased scrutiny over valuations, and any hint of slowing growth can lead to sharp sell-offs. The sector's heavy reliance on global supply chains makes it particularly vulnerable to trade tensions.

Health Care: The Lone Ranger

Health care was the only sector that managed to stay afloat, eking out a 0.2% gain. Moderna led the charge, with shares leaping 15% thanks to a favorable court ruling in Germany against Pfizer and BioNTech. It's like winning the lottery, but with vaccines. The health care sector's resilience is partly due to its defensive nature. In times of economic uncertainty, investors often flock to health care stocks for their relative stability and consistent demand. Moreover, the ongoing innovations in biotechnology and pharmaceuticals provide exciting growth opportunities, attracting investor attention.