#MarketTurbulence What Causes Market Turbulence?

Several key factors can trigger these turbulent periods:

Economic Indicators: Shifts in GDP, inflation, or interest rate expectations can shake market confidence.

Geopolitical Events: Conflicts, trade tensions, or diplomatic disruptions can spook investors. For example, rising India–Pakistan tensions earlier in 2025 led to sharp sell-offs in Pakistan’s markets and surges in bond yields.

Trade Policy Shocks: The onset of new tariffs or trade wars—like the April 2025 U.S. tariff announcement—can trigger global market crashes.