Markets are spiraling as President Trump’s comments about a potential recession hit home. In just 13 days, the S&P 500 lost a staggering $5 trillion, and the decline is only accelerating. The technology sector, once the market’s golden child, has plunged by 12.4%, inching closer to bear market territory. Crypto, too, is in a tailspin, shedding $1.3 trillion since December. This signals that the bear market has fully taken hold.
Trump’s comments were the trigger. Investors now understand the severity of the economic risks ahead. The President made it clear that, while a recession might be coming, the country is prepared for the disruptions that come with it. His comments about “weathering the storm” left little doubt that he’s willing to endure short-term pain to fix the long-term issues at play.
What’s interesting here is the timing. Gold, a key indicator of risk appetite, has been signaling trouble for months. While Bitcoin tumbled 17% since December, gold shot up 9%. This divergence shows that the markets were already on shaky ground, and now, the reality is finally setting in.
For the S&P 500, the picture looks grim. A key technical breach signals further declines, and analysts predict the index could drop another 5%, possibly reaching 5,500 by mid-2025. While some expect a rebound by the end of next year, it’s clear that the road ahead will be rocky. The markets have a long way to go before things stabilize.
Sources:
https://x.com/Polymarket/status/1899154423764418622
https://x.com/AnnaEconomist/status/1899183245520195704
https://x.com/StockMKTNewz/status/1899060894258057433
https://x.com/KobeissiLetter/status/1899224434340397561