The U.S. stock market has suffered heavy losses due to investor fears over President Donald Trump’s tariff policies. The S&P 500 has lost over $4 trillion in market value from its peak last month, as uncertainty spreads across businesses and consumers.
On Monday, the S&P 500 dropped 2.7%, marking its biggest daily decline this year. The Nasdaq fell 4%, its worst since September 2022. Tesla’s stock collapsed 15%, losing $125 billion in value. Tech giants like Apple and Nvidia also dropped about 5%.
The main concern is Trump’s tariff wars with China, Canada, Mexico, and Europe. Investors worry these trade policies could damage the U.S. economy, potentially leading to a recession. Businesses are uncertain about their future plans, and hedge funds have started pulling out of stocks at record levels.
Even Delta Air Lines has warned of economic trouble, slashing its profit forecast by half, leading to a 14% drop in its stock price.
Meanwhile, safe-haven investments like U.S. Treasury bonds are seeing higher demand, while risky assets like Bitcoin fell by 5%.
Market analysts believe the Trump administration is prepared for a stock market downturn to achieve its policy goals. The Cboe Volatility Index, which measures market fear, has reached its highest level since August.
Experts warn that unless the trade war situation improves soon, the stock market could drop further. Some predict the S&P 500 could fall another 5.5%. Investors are now watching upcoming government funding decisions and economic reports to gauge the market’s next moves.
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