The S&P 500 and Dow Jones are seeing their largest declines in years, and the US stock market is in serious trouble. Sticky inflation, a possible trade war, and growing recession fears are important elements that are driving investors to look for safer alternatives. What economic implications does this have?
News from international markets: President Donald Trump’s tariff offensive against nations around the world has caused the US stock market to suffer one of its biggest losses in recent memory.
Fears that a full-scale trade war may seriously harm global economic development, resurrect inflationary pressures, reduce corporate earnings, and possibly lead to stagflation have been heightened by Trump’s retaliatory tariffs on the US’s major trading partners.
The Dow Jones finished Friday with a 5.50 percent drop,while the S&P 500 plummeted 5.97 percent.The tech-heavy Nasdaq fell 5.73%.
As a result,the Nasdaq Composite fell more than 20% from its peak last December,and the S&P 500 experienced its largest weekly decline since March 2020.
Since reaching its record high in December, the Dow Jones Industrial Average has lost more than 10% of its value.
What is causing the US stock market to decline?
Although Trump’s tariffs were the primary and most direct cause of the steep decline in the US stock market, a number of other significant variables also seem to have had a role in the downward trend on Wall Street.
