U.S. Markets Approach Correction as Tariffs and Economic Uncertainty Weigh on Stocks

The S&P 500 has dropped over 9% from its peak, with volatility surging and fears of a recession rising due to President Trump's tariff policies.

The S&P 500 has fallen more than 9% from its February peak, nearing the 10% threshold for a market correction, with the Dow Jones and other indices also declining significantly.
President Trump's tariff increases, including a recent doubling of tariffs on Canadian steel and aluminum, have heightened economic uncertainty and disrupted market confidence.
Volatility indicators such as the VIX have surged, with the index up over 80% since Trump's second term began, signaling heightened market fear and instability.
Technical analysts warn of concerning signals, including the S&P 500 closing below its 200-day moving average for the first time since 2023, a potential indicator of prolonged market weakness.
Economists and analysts point to rising recession risks, with some advising diversification into safer assets, while others suggest potential buying opportunities in undervalued equities.