Stock Market Plummets: Nasdaq Leads Declines as Bitcoin Sinks, Consumer Confidence Drops
The US stock market fell across the board on Tuesday as President Donald Trump's revived tariff threats weighed on market optimism and the chances of interest rate cuts. Consumer confidence also plummeted in February, notching its biggest monthly decline in more than four years as 12-month inflation expectations jumped and recession fears escalated. The tech-heavy Nasdaq Composite fell around 1.6% on the heels of a tech-led sell-off on Monday.
- This sell-off reflects a growing trend where market volatility is increasingly driven by concerns about inflation, interest rates, and global economic uncertainty, underscoring the need for investors to diversify their portfolios and consider hedging strategies.
- How will policymakers balance the need to stimulate economic growth with the risk of fueling inflation, which could lead to higher interest rates and a stronger dollar?