Fears of an economic downturn have gripped investors as the U.S. stock market suffered a staggering $4 trillion loss. The recent sell-off is attributed to President Donald Trump’s tariff policies, which have unsettled businesses, consumers, and investors alike.
A wave of new tariffs against major trading partners, including Canada, Mexico, and China, has increased uncertainty in the markets. “We’ve seen clearly a big sentiment shift,” said Ayako Yoshioka, senior investment strategist at Wealth Enhancement. “A lot of what has worked is not working now.”
On Monday, the stock market sell-off deepened. The benchmark S&P 500 fell by 2.7 percent, marking its biggest daily drop of the year. The tech-heavy Nasdaq Composite slid 4 percent, its largest one-day decline since September 2022.
Since its record high on February 19, the S&P 500 has closed down 8.6 percent, shedding over $4 trillion in market value. It is nearing a 10 percent decline, which would represent a market correction. The Nasdaq ended Thursday down more than 10 percent from its December high.
The growing concerns over trade tensions and their impact on the global economy have led to increased volatility in financial markets worldwide. Young investors and businesses in the Global South are closely monitoring these developments, as they could have far-reaching effects on international trade and economic growth.
