Why is the market falling suddenly?
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles. A stock market collapse typically occurs when the economy is overheated, inflation is rising, market speculation is rampant, and there is significant uncertainty about the path of an economy.
Why is the market crashing in 2025?
Starting on April 2, 2025, global stock markets crashed amid increased volatility following the introduction of new tariff policies by United States President Donald Trump during his second term. Stocks sink as US-China trade war flares Stocks closed sharply lower on Friday after President Trump said his administration is considering imposing a massive increase in tariffs on Chinese goods.