#MarketPullback

#MarketPullback refers to a sharp decline in stock prices, often driven by economic or policy shocks. In April 2025, U.S. markets faced significant pullbacks after President Trump’s April 2 “Liberation Day” tariff announcement, imposing sweeping import duties. The S&P 500 fell 6.65% on April 3, nearly triggering a trading curb, while the Nasdaq entered bear market territory, down over 11% in two days. Small-cap Russell 2000 dropped 20%. Volatility spiked, with the VIX “fear index” hitting 40, a historical high. Tariffs, fears of global trade wars, and rising bond yields fueled panic selling, exacerbated by weak GDP and ADP jobs data. By May 2, markets rebounded, with the S&P 500 gaining 3% weekly, driven by strong tech earnings and U.S.-China tariff exemptions ($102B U.S., $40B China). X posts cite ongoing trade uncertainty and recession odds (70% on Polymarket) as key drivers.web:0,5,21,24post:4,7