S&p500 Sells Red for 2025 as Trade War Fears Ratchet
The S&P500 plunged 1.5% on Thursday, marking the first time this year that the benchmark slid into negative territory for 2025, as trade war fears and economic slowdown concerns led to a sharp sell-off in Big Tech stocks like Nvidia. The selloff was fueled by President Donald Trump's warning of further tariffs on Mexican and Canadian goods, which is expected to take effect next week. The downturn also reflected growing unease among investors about the impact of trade tensions on global supply chains.
- This sell-off highlights the fragility of global markets when trade tensions and economic uncertainty become increasingly intertwined, making it challenging for investors to anticipate market movements.
- How will policymakers' responses to these uncertainties shape the trajectory of the global economy in 2025, particularly with regards to interest rates and fiscal policies?