As the first quarter of 2025 comes to a close, Wall Street finds itself grappling with losses amid economic uncertainty. The S&P 500 has posted its fifth weekly decline in six weeks, while the tech-heavy Nasdaq officially entered correction territory, dropping over 10% from its recent peak.
European markets outshined their U.S. counterparts, reversing a long-standing trend. The S&P 500 significantly underperformed the pan-European Stoxx 600, marking a record 17-percentage-point gap. Tariff uncertainty weighed on U.S. stocks, while the promise of increased defense spending boosted European equities.
Meanwhile, China’s stock market surged, fueled by surprising advancements in artificial intelligence from its tech sector. The MSCI China Index has climbed more than 30% since August, signaling strong investor confidence.
The so-called “Magnificent Seven” tech giants, including Microsoft, Apple, and Amazon, have struggled. These megacap stocks, which led last year’s market gains, lost nearly $2 trillion in combined market value. Nvidia is down over 20% year-to-date, while Tesla has plummeted more than 30%.
Despite these high-profile losses, other major U.S. companies have held steady. An exchange-traded fund (ETF) tracking large U.S. firms, excluding the Magnificent Seven, has recorded gains this year.
Commodities, particularly metals, have thrived amid market uncertainty. Gold surged 17% in Q1, marking its best quarter since 1986. Copper prices also reached record highs due to tariff concerns and increased industrial demand.
Looking ahead, Q2 begins with key market-moving events, including a major tariff announcement on Wednesday and a crucial jobs report on Friday.
Source: Business Insider
Well, Trump did promise to lower prices. I think stocks are the only thing he’s lowered, but it’s keeping his promise, right?
Especially after his tariffs today. Lower stock prices while effectively increasing taxes on American consumers. Not targeted tariffs that could be understandable, but mostly blanket tariffs – similar to Doge’s chainsaw – both doing FAR more harm and costing FAR more to Americans than helping/saving.