The aggressive trade policies of US President Donald Trump have sent shockwaves through global markets, with Wall Street facing a significant downturn. Major indices such as the S&P 500, Nasdaq, and Dow Jones witnessed sharp declines in the overnight trading session. The financial turbulence erased a staggering $4 trillion from the S&P 500's peak just last month.
 

Impact on Major Tech Stocks

The recent sell-off disproportionately affected major tech giants such as Microsoft, Apple, Tesla, and Meta. As these companies account for a significant share of the market index, their steep losses accelerated the overall crash.
 

What Triggered the Stock Market Crash?

The market downturn stemmed from Trump's recent comments regarding the potential for a US recession in 2025. When asked about the possibility of a recession this year, Trump’s vague yet concerning response — “I hate to predict things like that” — created panic among investors. This statement, coupled with Trump's ongoing tariff war and trade-related uncertainties, sent Wall Street into a tailspin.
 

Expert Analysis on Recession Fears

While the sudden crash has raised alarms, financial experts believe it's too early to confirm a recession. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that while markets had high expectations from Trump’s administration, recent decisions have introduced greater volatility. “Markets have a lot of expectations from the Trump administration. But given the decisions they’re taking, it is working in the opposite direction for the US market,” said Bathini.

On recession concerns, Bathini added:

“It's premature at this point in time. There is no concrete evidence that points to a recession. The US administration knows how to avoid one.” Meanwhile, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the sell-off to Trump’s unpredictable trade strategies. “The S&P 500 and Nasdaq declining by 2.6% and 4% respectively is the market’s response to Trump’s tariffs and recession concerns. We will have to wait and watch how the situation develops,” Vijayakumar stated.
 

Key Factors Behind the Market Volatility

Several experts highlighted the unpredictable nature of Trump’s flip-flop tariff policies as a key contributor to the financial turmoil. Trivesh D., COO of Tradejini, emphasized that tariffs remain the biggest concern for investors. “The primary concern has been the ongoing back-and-forth tariff announcements, which have unsettled investors and dampened market sentiment. Concerns about a possible economic slowdown or even a recession have added to the turmoil, with the technology sector being the most affected,” Trivesh explained. Despite the immediate panic, many financial analysts remain cautiously optimistic. While the possibility of a US recession in 2025 remains uncertain, the ongoing volatility caused by Trump's aggressive trade moves is likely to keep markets turbulent in the coming months. Trump’s insistence on imposing reciprocal tariffs starting in April 2025 has further heightened concerns. Experts believe this “period of transition” may create short-term economic instability, even if the long-term outlook stabilizes. Trivesh D. added that investors should brace for continued volatility as the US navigates these economic shifts.
 

The latest downturn underscores the fragility of global financial markets amid rising trade tensions and uncertain economic forecasts. While experts have refrained from confirming a recession, the volatility triggered by Trump's aggressive trade policies continues to rattle investor confidence.With major tech stocks such as Microsoft, Apple, and Tesla bearing the brunt of the crash, the weeks ahead will be crucial in determining how Wall Street responds to ongoing uncertainties. For now, experts advise investors to stay vigilant and closely monitor geopolitical developments that could further impact global financial stability.

Note: This article is for informative and educational purposes only, this is not financial advice.