Global markets are experiencing heightened volatility as recent economic indicators raise concerns. In the U.S., the S&P 500 has declined approximately 4% year-to-date, with analysts warning of a potential further drop of up to 19% based on historical patterns . Investor sentiment has turned notably bearish, reaching levels not seen since 1997, primarily due to apprehensions about escalating tariffs and a possible recession .
The downturn is attributed to a combination of factors, including disappointing GDP figures, rising inflation, and trade tensions. First-quarter GDP data revealed a contraction, marking the first decline since 2022, largely due to a surge in imports ahead of new tariff policies . Additionally, technical analysts caution that the S&P 500's approach to key resistance levels could signal further market instability #MarketPullback .