The U.S. stock market has shed $4 trillion in value since its February peak, as investor confidence wanes amid escalating trade tensions and policy shifts under former President Donald Trump. The S&P 500 dropped 2.7% on Monday alone—its steepest single-day decline this year—while the Nasdaq Composite plunged 4%, marking its worst performance since September 2022.
Analysts attribute the sell-off to heightened uncertainty from Trump-era tariffs targeting major trade partners, including the Chinese mainland, Canada, and Mexico. Ayako Yoshioka, senior strategist at Wealth Enhancement, noted a "big sentiment shift" among investors, stating that traditional market strategies "are not working now."
The S&P 500 has fallen 8.6% from its February 19 high, nearing correction territory, with tech stocks bearing the brunt of losses. The Nasdaq is already 10% below its December peak. Market volatility reflects growing concerns about prolonged economic disruptions and their ripple effects across global supply chains.
Businesses and consumers face mounting challenges as trade policies evolve, with Asia-Pacific economies closely monitoring potential impacts on exports and regional stability. Investors worldwide are recalibrating portfolios amid fears of a broader economic slowdown.
