Wall Street lives the worst week in 2025 and fears on American stocks

Wall Street traders last week suffered the largest losses in assets since the campaign to tighten the monetary policy on which the Federal Reserve has its climax in 2023, for reasons, on top of which is customs tariffs, slowing growth, and so on, according to the American Bloomberg Network.

Fears of the movements of the stock market

The issue is summarized in the fears of investors and the stock campaign, after this huge role that the market gains played in enhancing their feeling of prosperity in recent years with the succession of the lashes, which helped enhance consumption.
The shares of shares constituted 64% of the financial assets of American families last year 2024, which is a record number according to the data of the Federal Reserve.

“Wealth effect” on stocks

In fact, anxiety has investors in light of what is known as the “effect of wealth” in which people tend to expand in their wallets when the assets are prosperous while they do the opposite when they feel tense and their fears of market decline are growing.
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Although the size of the losses may not be the cause of panic yet, the speed of the decline is mentioned that the markets themselves have the ability to cause economic problems if it continues to deteriorate.
About this, Dog Ramsey, chief investment official in “Lotheold Group”, whose investment fund is outperforming the Standard & Poor’s 500 this year: “The stock market is good in predicting the future because it helps in finding and we doubt that this economic expansion can escape the correction of the stock market by more than 12-15%.”

The threat of American families

In the current business course, which is high on capital, where the richest American families, which represent 10% of the total consumer spending in the country, constitute nearly half of it and owns half of the shares, equivalent to about 23 trillion dollars, the threat posed by the market wealth is real, according to Mark Zandi, the economist of economics at Moodyez Analysx.
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A significant decline and erasing wealth

Zandy estimates that consumer spending is ultimately decreased by 2 cents against each decrease of one dollar in net wealth and this is a frustrating number, given the eradication of $ 3.7 trillion of shares in the past few weeks at a time when consumer spending slows down and data from housing to the labor market appears signs of weakness.
Zandi added: “There is a strong link between the stock market – its rise and decline – and the power of consumer spending and the economy. If the stock market returns to the rise, as happened in recent sales or recent corrections, there will be no harm, but if the market remains low, this will lead to reducing consumer spending and then obstructing it.”

Standard & Poor’s 500 index movements

While the Standard & Poor’s 500 index rose on Friday and has not yet reached the anxious threshold mentioned by Ramsey, as it decreased by 6 % from its peak, months of market calm fly suddenly fled within days.
The fluctuations in stocks, bonds of companies and currencies increased, and this raises questions about whether the pressure on the Wall Street will cause discomfort between consumers who have assets, which is the latest economy card that has already become cloudy because of the unknown results about customs tariffs and the expulsion of government employees.

The worst week of shares in 2025

The stock markets recorded its worst week in 2025 ever, as the Nasdak compound index entered a short period in a 10%correction.
With the decrease in the circulating investment funds that follow shares, treasury bonds and companies by average, the market bears the worst wave of origins since October 2023.

Anxiety about the stock market drop

The shares decline are particularly disturbing, as the height of the total net wealth in the United States since 2022 was almost fully driven by their property from the stocks, as technology arrows led the arrow boom amid the madness of artificial intelligence. With the exception of this factor, the net wealth of American families was to become widely fixed during the period, according to Kaxian Tan, an analyst at “Gavix”. It warns that the decline in the stock market may force Americans to save more.