#MarketPullback 📉 Key factors behind the market decline

1. Uncertainty of tariffs and trade tensions

The recent imposition of broad tariffs by President Trump has heightened investor concerns. These trade policies raise worries about disruptions in supply chains and increased production costs, especially in sectors such as the automotive industry and consumer goods. Companies like Ford and General Motors have already issued warnings about potential multi-billion dollar impacts.

2. Signals of economic slowdown

The U.S. economy contracted in the first quarter of 2025 for the first time in three years. While job growth remained steady in April, analysts are cautious about the sustainability of consumer spending, particularly against a backdrop of rising inflation and potential interest rate hikes.

3. Investor sentiment and market valuations

Investor confidence has declined, and a recent survey showed that 32% of professional investors are pessimistic about market prospects - the highest level since 1997. Concerns about overvalued stocks and a potential global trade war contribute to this pessimism.