Kateryna Chornovol22:35, 10.03.25

The Nasdaq 100 fell 3.8% for the first time since 2022.

The US stock market continues to fall amid US President Donald Trump’s tariff policies, raising concerns that the US economy will slow.

Bloomberg reports on this . It is noted that the Nasdaq 100 index, consisting of tech companies, fell by 3.8% for the first time since 2022. The S&P 500 index fell by 2.6%. The index is on track to close below the 200-day moving average for the first time since November 2023, breaking a streak of 336 sessions above its long-term support line. Its 5% drop from the maximum in just nine sessions was the fastest decline of this magnitude since February 2020, when the cause was the pandemic.

While Trump has warned that Americans may feel “a little bit of anxiety” from trade wars with Canada, Mexico and China, he has not said when the U.S. will see the benefits of his policies, and he has refused to rule out the possibility of a recession.

Wall Street is also in turmoil. Strategists and economists are upping their forecasts for a U.S. economic downturn. That’s setting the U.S. stock market up for what could be a long period of turbulence.

The biggest tech companies in the S&P 500 fell 4.6%. Tesla Inc. shares fell 13%, their worst day since 2020. Money-losing tech stocks were in free fall, while Goldman Sachs Group Inc.’s basket of most-shorted stocks fell 4.7%.

Investors are grappling with geopolitical risks, rising volatility and elevated inflation, underscoring expectations that the Federal Reserve is poised to keep interest rates higher than it thought a few months ago. A full fall to the lower end of its historical range, as happened during the 2018-19 trade war, could drag the S&P 500 even lower, down about 8% to 5,300, according to Deutsche Bank strategist Parag Thatte. The index is currently trading at 5,650.

How the financial world is reacting to Trump’s actions

Not long ago, Donald Trump signed a long-awaited decree on the creation of a strategic reserve of cryptocurrencies. While industry representatives commented favorably on this step, Bitcoin showed a 5.7% drop. Subsequently, it did regain its positions. It is noteworthy that after Trump’s victory in the elections, the Bitcoin rate “jumped” up and already exceeded $ 106,000 in December. Subsequently, the currency depreciated.

It is worth noting that it is not only the American stock market that has suffered from Trump’s tariff policy. In Europe, as of March 4, the benchmark Stoxx Europe 600 index fell by 0.9%, while Germany’s Dax index, which has a large share of exports, fell by 1.5%. Hong Kong’s Hang Seng index and China’s main CSI 300 index fell by 2% and 0.8%, respectively.

(C)UNIAN 2025