Wall Street Wobbles while S&P 500 flirts with Bear Market: Understanding the Bear Market Buzz | Einsmark news

World markets tumbled when Trump’s renewed rates drove the S&P 500 near Bear Market area. Despite the slide, Trump defended the move, while analysts warned about a recession. Traders work on the New York Stock Exchange floor in New York, on April 7, 2025. Wall Street shares opened sharply on Monday and joined a global sales over the concern that a trade war caused by US President Donald Trump will cause a global economic slowdown. (Photo by Timothy A. Clary / AFP) (AFP) Global Markets slipped into Onrus on Monday (April 7), with a short lead in the market area of ​​the S&P – defined as a 20% drop of its most recent peak – amid an increasing trade tension that has arisen by President Donald Trump’s renewed rates. The S&P 500 index opened lower and was down 17.4% from the 19 February highlight, which only needed a 3.1% drop to officially mark a bear market. Trump rejects the fall of the market, defending rates despite the sharp losses in stocks, Trump has hit a challenging tone. He stated that he would not reverse the rate of livestock tariffs, which he insists on, is the key to correcting what he considers unfair trade practices. “Other countries have abused the United States with their trade policies,” Trump said, adding that the “billions of dollars” would bring in revenue. When questioned about the volatility of the market and the increasing fear of a recession, the president noted: “Sometimes you have to take medicine to fix something.” Fed keeps steady, for now, Federal Reserve chairman Jerome Powell indicated that the central bank would run carefully. Powell said on Friday that the Fed must first assess the economic effects of the rates before adjusting the policy. He also warned that reducing interest rates could have “inflation” prematurely. Trump has his calls for the Fed to lower rates, but Powell’s position indicates no immediate relief for riding investors. The understanding of bear markets and recession risks Bear Markets has historically preceded recessions, but not always. Since 1929 there have been 15 bear markets. Recessions – defined as “a significant decrease in economic activity that has been spread across the economy and lasts more than a few months” – usually have much more serious consequences. For example, the Covid-19-induced recession of 2020 has led to unprecedented levels of unemployment. What lies ahead for the markets? With another wave of Trump imposed rates that will kick in later this week, the current volatility in the market could increase. Investors monitor the movements of the Federal Reserve, the White House and the most important economic indicators carefully to determine whether this downturn is short-lived-or the beginning of a deeper recession. First published: 7 Apr 2025, 23:54 IST