The stock market, notably the S&P 500, has fallen into correction territory, marking a 10% decline from its peak. This downturn reflects investor pessimism about erratic policy announcements from the Trump administration, which have increased market unease. Additionally, fears surrounding potential recession are growing as uncertainty affects consumer spending and business investments. Other major indexes, such as the Nasdaq and Russell 2000, have also experienced corrections, creating deeper worries about economic stability going forward into 2025.
I think what markets are telling us is that they are very concerned about the potential for a recession, said Kristina Hooper, chief global market strategist at Invesco.
The move stems from investors' growing pessimism about the whipsawing policy pronouncements from Washington over the past few weeks.
On Thursday, the S&P 500 fell 1.4 percent and is now down 10.1 percent from a peak reached less than one month ago.
Uncertainty around the effects of Mr. Trump's policies is causing consumers to spend less and discouraging businesses from investing.
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