Stock Market Sees Worst Week in Six Months Amid Tariffs and Economic Uncertainty
The stock market experienced its worst weekly decline in six months, with investors becoming increasingly risk-averse due to uncertainties around trade policy and economic forecasts. The S&P 500 dropped 4.3% last September following a weaker-than-expected August jobs report, and it has since tested its 200-day moving average for the first time since November 2023. The four charts provided offer insight into this week's market volatility, showing a decline in semiconductor stocks, a drop in the US dollar index, and a surge in the 10-year US Treasury yield.
- The increased volatility in markets can be attributed to the growing distrust of central banks' ability to mitigate the effects of economic downturns, making investors more cautious about investing in riskier assets.
- Will the current market conditions lead to a correction in the broader economy, or will they merely serve as a warning sign for further instability?