US President Donald Trump has not ruled out the possibility of recession in the country. His statement led to a huge decline in the US stock market on Monday. The S&P 500 has lost about $4 trillion. This loss is equal to the total market cap of all the companies listed on the Indian Stock Exchange (BSE). Monday’s decline had the biggest impact on the shares of tech companies. Shares of both Apple and Nvidia fell by about 5%, while Tesla shares fell more than 15%. Tesla’s market cap decreased by $125 billion due to this decline.Apart from Trump’s statement, there were many reasons for this decline. Rising trade tensions, inflation concerns, and uncertainty about Trump’s economic policies shook the market. The S&P 500 index fell 2.7% on Monday. It has fallen 8.6% since its highest level in February. The Nasdaq Composite also fell 4%, which is its biggest one-day decline since September 2022. The total value of all the companies listed on BSE is around $4.5 trillion, while the value of the US stock market is around $57 trillion.This decline on Wall Street has wiped out the gains from the boom after Trump’s re-election. The market had boomed after Trump’s re-election on November 5. But now investors are re-evaluating the economic risks due to his aggressive tariffs. UBS has warned in a report that the probability of recession or economic slowdown in the US has increased from 20% to 30%. Trump’s changing tariff policy and the uncertainty created by it have started affecting the US stock market.The impact of Wall Street’s turmoil is being seen all over the world. The Indian stock market is also facing its challenges. Nifty 50 has fallen 15% from its September high. Analysts are divided on whether this is the beginning of a major recession or just a decline. UBS strategists are still cautiously optimistic. He says stocks still have the potential to grow in the medium term. But he also warns that investors will have to deal carefully with increased political risks in the coming months.Talking on this topic, Rohit Somani, who is a financial analyst at Deloitte, said, “The tariff policy of US President Donald Trump is currently a topic of discussion around the world. The US President has threatened the world with a ‘tariff war,’ which has created panic in many countries. This tariff is also going to be implemented from next month. However, in the meantime, the US stock market surprised everyone on Monday. The US stock market crashed on Monday, causing panic across the country.”.The fall in the US stock market on Monday is the biggest decline since 2022. This has caused a lot of damage to technology stocks. Big American tech companies have suffered losses due to this fall in the stock market.While the global economy is struggling to find its niche amidst the tariff war, India’s exports felt the pinch of potential US tariffs in February, according to government sources cited by Reuters. President Trump, in a recent statement, suggested his plan to impose reciprocal tariffs, raising import taxes to match those levied on US goods by other countries, starting April 2nd. The impact of these tariff changes on India’s exports to the US could be substantial, as the US is a major market for Indian goods.
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