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 the U.S. markets suffering staggering losses exceeding $6 trillion, marking the worst bloodbath since the 2008 global financial crisis. 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 amid growing economic uncertainty. The downturn began with President Donald 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, escalating tensions and igniting a wave of panic in the markets. The NASDAQ index was the first major casualty, plummeting by over 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. As the deterioration accelerated, JPMorgan raised the likelihood of the U.S. economy entering a recession to 60%, based on alarming signals of weakness in the labor market and a clear slowdown in domestic demand. On the indicators front, Wall Street witnessed its biggest weekly losses since March 2020, with the S&P 500 index dropping by 9.08%, the NASDAQ falling by 10.02%, and the Dow Jones declining by 7.86%. These indices also recorded the largest double daily decline since the beginning of the pandemic. Amid this bleak landscape, the global economy stands at a critical crossroads, with everyone awaiting the next steps from financial decision-makers in an attempt to contain the storm before it expands and spirals out of control.