Trump’s Tariff Proposal Triggers Market Drop: Uncertainties Loom as Economic Data Paves the Way for Further Volatility

Market sentiment has taken a significant hit following U.S. President Donald Trump’s announcement of a new tariff proposal, intensifying concerns about global economic growth prospects and causing a sharp decline in American stock markets. The S&P 500 saw a staggering $1.5 trillion reduction in value within two trading days, with the Nasdaq index falling more than 20% below its December 2023 record high, marking it officially in a bear market territory. Investors are looking towards upcoming economic data releases next week to gauge potential for resolution.