The year 2025 began with a shocking start in the financial markets, as the S&P 500 index witnessed a decline of 10.2% during the first 73 trading days, making it the fifth worst annual start in its history. The main reason is attributed to the escalating trade threats from U.S. President Donald Trump; this raised concerns among investors and ignited fears of a new trade war.
Notably, this catastrophic start places 2025 alongside years filled with major crises, such as the Great Depression, World War II, and the global health crisis in 2020. However, historical experience shows that some of these years witnessed a remarkable recovery in the second half.
According to data from May 1, 2025, the S&P 500 index rebounded from its lowest levels at 4,982.77 to reach 5,604.14, meaning the annual loss was reduced to only 4.7%, which enhances hopes for a positive rebound during the second half of the year.
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