U.S President Donald Trump warned of a market crash if Kamala Harris, Attorney and former Vice President of the United States won, but after his own victory, markets have sharply declined.
Stock markets around the world are tumbling in response to tariffs imposed by the Trump administration, raising fears of economic disruption and slowing global trade.
On Friday, U.S. markets experienced their steepest decline since the COVID-19 crisis in 2020. Despite the severity, last week’s drop did not rank among the worst historical market crashes.
On April 7, markets finished unevenly after a highly tense session, with earlier global sell-offs fueled by anxiety over Trump’s sweeping tariffs and their possible impact on global growth.
Since Trump took office, the S&P 500 has fallen by 15%, with the sharpest losses following his “Liberation Day” announcement of sweeping new tariffs. If the slide deepens, it could mark the quickest transition from a bull to bear market under any modern president.
While the S&P 500 hasn’t officially hit bear market status, both the Nasdaq and the Russell 2000 have already entered bear territory, each dropping over 20% from their recent highs.
“What I see in the media is people are freaking out. For me, personally, I see it as an opportunity. As an entrepreneur, I like to use the term doubling down on it, meaning I’ll put more money into the stock in hopes, because it’s not like the stock exchange cannot be down forever,” said Deven Crisostomo, freshman psychology and international business major.
The stock market’s sharp decline could be a warning sign of broader economic issues. With over 60% of Americans tied to the market through investments, losses on Wall Street are increasingly felt on Main Street. Stock experts say Trump’s tariffs are burdening businesses and consumers alike, effectively functioning as a large-scale tax increase.
Major banks like JPMorgan, Goldman Sachs, and HSBC have raised the odds of a recession to between 40 and 60%. Forecasts for GDP growth are falling, with some predicting a contraction in the first quarter of 2025.
“What’s going to happen with the market? I can’t tell you, but I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other,” Trump said.
According to CNN, if the U.S. economy contracts for two straight quarters, it would be the first time a newly elected president has faced a recession this early since 1953. Experts are drawing comparisons between Trump’s trade policies and the supply shocks of the 1970s, warning of rising inflation and stalled growth.
Confidence is shaky right now. If markets keep falling, people may spend less, and companies could cut back, making things worse. RBC warns that in a typical recession, markets drop about 27%, so the worst might not be over.
“I’m hoping that the stocks that I’ve looked into will be able to go up as well, almost like an opportunity, instead of like turmoil that everyone’s freaking out over it and stuff,” Crisostomo said.
With the market on edge and recession fears mounting, the path ahead remains uncertain, leaving both investors and consumers hanging in the balance.
Edited by Morgan Albrecht
