President Donald Trump’s policies have continued to wreck havoc on the US Stocks, whipping out trillions of dollars with analysts saying that the worst is yet to come.
On Monday, the US Stocks wiped out 1.7 trillion dollars, making it one of the largest single fall in a day as Donald Trump’s tariff war on other countries such as Mexico and Canada continued.
According to stats, the United States stock market has lost over 4 trillion dollars in value since its peak on Feb. 19, driven by economic uncertainty related to ongoing tariff policies. Trump has been using tariffs to settle scores with other countries.
On March 10, the S&P 500 dropped 8.6 percent from its record high, while the Nasdaq Composite confirmed a 10 percent correction since December.
Major tech stocks – including Tesla, Apple, and Nvidia – saw substantial losses, with Tesla’s market value dropping by 125 billion in one day, the largest drop in history as uncertainty continues to reign.
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The decline is linked to the Trump administration’s tariff measures targeting key trading partners like Canada, Mexico, and China. These policies have created uncertainty for businesses and investors. Most investors from the said countries have pulled back their investments.
Defensive assets like utilities gained 1 percent, and demand for US government debt increased. Meanwhile, hedge funds reduced stock exposure at the highest rates in over two years.
Market volatility remains high, with the Cboe Volatility Index reaching its highest closing level since August. Trump has been forced to removed some of the imposed tariffs on countries like Canada.
Canada, in retaliation, had imposed tariffs on all US products and had ordered all products from the US to be taken off the shelves and replaced with those made in Canada. The move hit hard on US companies especially those that make whiskey and other drinks that have a huge market in Canada.
The S&P 500’s forward price-to-earnings ratio is still above its historical average, raising valuation concerns.
Analysts warn that trade tensions, geopolitical issues, and mixed economic signals could prolong market instability in the coming weeks.
Since taking over the Oval Office, Donald Trump has been using his might as the President of the United States of America to bully other countries into accepting his terms of trade.
In Africa, he has cut off aid to South Africa and imposed tariffs in what he calls a move to force the South African government to respect the rights of the White Minority who have large tracks of land in South Africa.
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