The world’s most powerful president, ie US President Donald Trump, had clearly said on the weekend that America is not going to be in the grip of recession. Even after that, no one believed this on Wall Street. On Monday, there was a tremendous decline in the US stock market. Where the Dav Jones saw a decline of 900 points. At the same time, Nasdaq Composite closed down by 4 percent. S&P closed down 2.7 percent. According to foreign media reports, the investors of the US stock market have drowned more than 4 trillion dollars i.e. India’s total GDP in a few days.
If we talk about American companies, Tesla’s stock has seen a decline of 15 percent. While the shares of 7 big American companies in the world talks about the shares of Apple, Microsoft, Alphabet, Amazon.com, Nvidia and Meta platforms, there has been a decline of 2 percent to 5 percent. Now the biggest question is that when America President Donald Trump is denying any possibility of Risation, then why is there a decline in the stock market. It is very important to look at the data of the stock market before going on the discussion of this matter.
Big decline in US stock market
Dow Jones: The US index on Monday saw a decline of 890.01 points, or more than 2 per cent and closed at 41,911.71 points. In the last one month, there has been a decline of about 6 percent in Dowzos. Dow Jones reached a 52 -week high of 45,073.63 points on 4 December, which has come down more than 7 percent in the present time.
S&P 500: This heavy index of America has seen a big decline. On Monday, the index saw a decline of 155.64 points, or 2.70 per cent and closed at 5,614.56 points. On February 19, the index reached its peak with 6,147.43 points. Since then, it has seen a decline of 8.67 percent.
Nasdac Composite: This index saw the biggest 4 per cent decline and 727.90 points fell to 17,468.32 points. On 16 December, Nasdaq reached a 52 -week high with 20,204.58 points. Since then, it has seen a decline of 13.54 percent. The special thing is that after September 2022, Nasdaq has seen the biggest decline in any one day.
4 trillion dollars of US stock market clean
According to the Reuters report, S&P was on its peak last month. Since then, S&P 500 has seen a decline of 8.66 percent. Due to which the market value of the index has reduced by 4 trillion dollars i.e. India’s total GDP. According to experts, a similar attitude can continue in the US stock market in the coming days. This decline may increase even more. There is also the reason for this. The path on which Donald Trump has started, he is taking the country on the path of recession.
Large decline in American companies
- Tesla’s stock saw a decline of 15.43 per cent and the company’s market cap has reduced $ 125 billion.
- The world’s largest company Apple shares have seen a decline of 4.85 per cent on Monday.
- Talking about Microsoft’s shares, it has closed down 3.34 per cent on Monday.
- The stock of Amazon.com has seen a decline of 2.36 percent on Monday, which is quite large.
- The world’s largest AI company Nvidia Corp saw a 5 per cent decline and closed at $ 106.98.
- Google’s parent company Alphabet’s stock has seen a major decline of 4.41 per cent and closed at $ 167.81.
- The shares of Mata, a parent company of social media platforms like Facebook and Instagram, closed with a decline of 4.42 per cent.
Did the market fall due to fear of American recession?
Wall Street experts believe that the main reason for the decline in the stock market is the fear of recession. Whereas on the weekend, President Trump refused to obey that the US would enter the recession this year. He told Fox News that this would be a period of transition, because what we are doing is very big. ” On the other hand, Commerce Secretary Howard Lutnik had told NBC News that no recession is going to come in America. Some investors say that the indifferent attitude of the Trump administration towards the situation of potential recession is disturbing the market experts, believing that the stance promoting Trump’s development will promote economy and markets.
America may come in trouble
Friday’s job report indicated that the labor market is still stable, but may be weak. Some analysts are worried that the Trump administration may increase the job reduction with depot and continuing government sorting. George Sipoloni, the portfolio manager of Pen Mutual Asset Management, told Wall Street Journal that we have a administration which is completely different from the previous administration. We have many other problems. Which can actually take us to a potentially difficult situation. Monday’s falling markets have come after a weeks filled with upheaval, in which concerns are increasing about how the administration’s unexpected tariff policy can affect American development.
Speaking at the CERAWEK conference in Houston, Lazard CEO Peter Orsjag said that the uncertainty by Tariff War in relation to Canada, Mexico and Europe, while speaking at the CERAWEK conference in Houston, can force the US government to think once again. He said that people can understand the ongoing tension with China, but the part of Canada, Mexico and Europe is confusing American people. Until it is resolved in the next one month, this America can cause real harm.
Will the Indian stock market affect?
Can this turmoil to spread to the Sensex and Nifty business on Tuesday, then the broker can spread to the street? Well, one thing is confirmed: this nervousness is not limited to the wall only. European markets have already been affected and the Asian markets cannot remain untouched by this. Dalal Street is expected to decline on Tuesday. Especially the shares of tech companies may see a decline, which depend on the US. With the dominance of foreign institutional investors (FIIs) in India, all will be eyeing their next step. If they continue to withdraw big money, investors can expect heavy fluctuations in coming sessions.