#MarketTurbulence market turbulence is attributed to several factors, including :
Tariffs and Trade Wars - Uncertainty surrounding tariffs has led to weakening consumer and business sentiment, causing market volatility.
Tech Weakness - Tech stocks have given back some of their historic gains due to investor skepticism towards riskier sectors and the emergence of new AI models.
Recession Fears - Concerns about economic growth have resurfaced, with warning signals from the Federal Reserve's preferred recession indicator and the Atlanta Fed's GDPNow suggesting a potential economic contraction.
Inflation - Persistent inflation has led to concerns about the Federal Reserve's ability to lower interest rates, affecting market sentiment.
Interest Rates and Budget Talks - Higher interest rates and government spending decisions have contributed to market uncertainty.
In the Indian market, investors have lost around ₹40 lakh crore due to a 15-17% decline in the Sensex and Nifty from their peak levels, primarily driven by foreign institutional investors pulling out of the domestic market .
These market fluctuations have also affected the IPO market, with retail investors showing reduced interest and lackluster performances for new listings .