
U.S. Stock Markets Reel from Trump Tariffs and Recession Fears
U.S. stock markets concluded the first quarter of 2025 in turmoil, with significant declines attributed to former President Donald Trump's tariff policies and growing recession fears. The Dow Jones Industrial Average, S&P 500, and Nasdaq all recorded substantial losses, marking the worst quarterly performance since 2022. Analysts point to the uncertainty surrounding Trump's proposed tariffs as a key factor unsettling investors.
Reports from Reuters and The Washington Post highlight how the markets have been on a downward trajectory since the announcement of these tariffs, with futures tumbling and widespread concerns about an impending economic downturn. Bloomberg's analysis further underscores the battered state of the U.S. economy, with sectors across the board feeling the pinch.
NBC News detailed that the stock market's reaction was exacerbated by the lack of clear economic strategies from policymakers, leading to increased volatility and investor panic. As the U.S. grapples with these economic challenges, the focus remains on how the government will respond to stabilize the markets and restore investor confidence.
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Why is the S&P 500 down?
The S&P 500 (SPX) lost ground last week for the fifth time in six weeks amid uncertainty about the impact of tariffs and growing concerns the economy could be headed toward a recession.
Will tariffs hurt the stock market?
Analysts at Goldman Sachs cut their forecast for the S&P 500, citing “higher tariffs, weaker economic growth and greater inflation than we previously assumed” in a note on Sunday. They expect the index to fall another 5 percent in the next three months.
Why is the Nasdaq falling?
NASDAQ Composite (^IXIC) Year to date, the tech-heavy index is down more than 10% as growth stocks have been hit amid worries of sticky inflation and tariff news, with more to come later this week.