Wall Street Crisis 2025: Trillion-dollar losses threaten the global economy.

Over the past two days, Wall Street has endured a severe financial earthquake, with American markets suffering staggering losses exceeding $6 trillion, marking the worst bleeding since the global financial crisis in 2008. The reason? A sharp escalation in the trade war between Washington and Beijing, sparking collective panic in financial markets and pushing investors towards heavy selling amidst growing economic uncertainty. The deterioration began with President Trump announcing new tariffs, describing the move as a "liberation day," prompting China to swiftly impose a 34% tariff on all imports from the United States, exacerbating tensions and igniting a wave of panic in the markets. The NASDAQ index was the first major casualty, dropping more than 21% from its December peak, officially entering a bear market phase, a clear indicator of the crisis depth and the psychological pressures investors are facing. The blow was not limited to stocks, but also extended to energy markets, where Brent crude futures fell to their lowest level since August 2021, reflecting a sharp decline in global growth expectations. With the acceleration of the downturn, JPMorgan raised the likelihood of the U.S. economy entering a recession to 60%, based on concerning signals of weakness in the labor market and a clear slowdown in domestic demand. In terms of indicators, Wall Street saw its biggest weekly losses since March 2020, with the S&P 500 index falling by 9.08%, the NASDAQ dropping by 10.02%, and the Dow Jones falling by 7.86%. These indices also recorded the largest double daily decline since the beginning of the pandemic. In this grim scenario, the global economy stands at a critical crossroads, as everyone awaits the next steps of financial decision-makers in an attempt to contain the storm before it expands and spirals out of control.