U.S. Stock Market Plunges Amid Tariff Concerns and Bear Territory Fears
The U.S. stock market experienced a significant downturn on April 7, 2025, as futures plunged and the S&P 500 approached bear territory. This market rout was exacerbated by concerns over new tariffs announced over the weekend, which have unsettled investors and led to a sharp decline in stock futures.
According to a report by CNBC, the market opened with heavy losses, reflecting the growing anxiety among investors. CNN Business highlighted that the looming tariffs have been a major factor in the market's volatility, with many fearing a prolonged economic impact. Reuters reported that the S&P 500 was on the brink of entering bear territory, a situation that could signal further declines in the near future.
Morgan Stanley analysts have warned investors to brace for another potential drop of 7% to 8% in the S&P 500, as cited by MarketWatch. This forecast has added to the bearish sentiment, prompting many to reassess their investment strategies in light of the current economic climate.
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Why is the stock market tanking?
Financial markets around the world have been slammed by the Trump adminstration's sweeping tariffs on its trading partners, and China's swift retaliation. Share markets have posted their biggest declines since the COVID pandemic hit in 2020, as fears of US recession surged.
Is the stock market in the bear market?
The index has now officially entered a bear market for the first time since 2022, according to Dow Jones Market Data. A bear market is widely defined as a decline of at least 20% from a recent high. Created with sketchtool. Created with sketchtool.
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