#MarketTurbulence has been buzzing in 2025, reflecting a volatile year for global financial markets. Based on recent web and X post data, here’s a concise breakdown of what’s driving the turbulence and how investors are responding:Key Drivers of Market Turbulence in 2025:Tariffs and Trade Tensions: New U.S. tariffs, including a 10% baseline on all trading partners and higher rates on countries like China (34%), Japan (24%), and the EU (20%), have disrupted global trade, raising inflation fears and supply chain costs. These policies, intensified under the Trump administration, have sparked market swings, with the S&P 500 dropping 4.4%-5.6% in Q1 and March alone.

Federal Reserve Ambiguity: The Fed’s decision to hold rates at 4.25%-4.5% with vague signals on future cuts has fueled uncertainty. Investors are split, with a 50.5% chance of a September rate cut priced in, risking sell-offs if expectations aren’t met.