Today, there are several key reasons behind the massive decline of $1.75 trillion in the U.S. stock market:
1. Trade wars and tariff policies: President Donald Trump's aggressive tariff policies have raised fears of a global trade war. The tariffs imposed on China, Canada, and Mexico have created uncertainty among investors, leading to a market decline.
2. Recession fears: Concerns about a potential recession due to Trump's policies have made investors cautious. Trump has acknowledged that his tariff policies could lead to a recession, negatively impacting the market.
3. Decline in the technology sector: The tech-heavy Nasdaq index has dropped by 3.8%, marking the largest decline since 2022. Notably, Tesla's shares saw a 15% decline, which is 50% lower than its all-time high in December.
4. Weakness in economic indicators: A slowdown in job growth, a weak manufacturing sector, and a stable inflation rate have heightened investors' concerns, increasing selling pressure in the market.
All these factors combined have increased fear and uncertainty among investors, leading to such a significant decline in the U.S. stock market today.
