Why did the American stocks fall severely yesterday … and what are the next expectations?

Stock markets in the United States and Asia have declined due to concerns about the negative economic impact of customs duties imposed by US President Donald Trump, according to the British BBC News.

Stagnation fears are ravaged by stocks

This came after the American president said in a television interview that the world’s largest economy is going through a “transitional period” when he was asked about hints about the possibility of recession.
Since broadcasting these statements on Sunday, senior officials and consultants in the Trump administration have sought to calm investor concerns.
Also read: Wall Street lives the worst week in 2025 and fears of American stocks

Trump’s moves shake stock markets

“The previous idea is that Trump is the head of the stock market is subject to re -evaluation.”
In an interview with Fox News, Trump seemed to recognize fears about the economy. He said: “I hate to expect things like this. There is a transitional period because what we do is very big. We are returning wealth to America. This is a big thing.”

Asian stock performance

The Japanese Nikai 225 index decreased by 1.7%, the Cosby index in South Korea fell by 1.3%, and the Hang Sing Index in Hong Kong decreased by 1%.
The Standard & Poor’s 500 index, which tracks the largest American companies on New York, ended on Monday a decrease of 2.7%, while the Dow Jones Industrial Index decreased by 2%.
Also read:
The Nasdak Index, which has been defeated by technology shares, has a harsh blow in particular, as it decreased by 4%.
The shares of “Tesla” fell by 15.4%, while the shares of the giant Invidia of Artificial Intelligence Fasts fell by more than 5%.
The shares of other major technology companies, including “Meta”, “Amazon” and “Alphabet” sharply fell.

Why did American stocks fell?

“Trump keeps political leaders confused about his next steps on customs duties, but the problem is that it keeps investors also confused and this is reflected in the bad mood of the market,” said Tim Water, a chief market analyst at the KCM Trade Financial Services Company.
“Although talking about stagnation may be premature, the mere possibility of this is sufficient to put traders in a defensive mental state,” Waterwar added.
After closing the trading on Monday, a White House official told reporters: “We are witnessing a strong spacing between the spirit of the stock market and what we see already revealed by companies and business leaders.”
“It is clear that the second factor is more important than the first factor in relation to what awaits the economy in the medium term,” the official added.
In a separate statement issued at a later time, White House spokesman Kush Disai said that the “industry leaders” responded to Trump’s agenda, including customs duties “with” investment pledges to trillions of dollars. “
Last week, the main American markets fell to the level he scored before Trump’s victory in the elections last November, which investors initially welcomed due to the hopes of lowering taxes and alleviating organizational restrictions.

Stock expectations in Wall Street

Investors fear that the customs duties imposed by Trump – which are taxes on the goods that are applied when entering the country – will lead to high prices and weakening growth in the largest economy in the world.
“I undoubtedly think that the level of customs tariffs imposed by Trump will cause inflation at some point in the future,” said Rachel Winter, director of investment at Kelik & Co.
Economist Mohamed El -Erian said that the investors were initially optimistic about Trump’s plans to cancel organizational restrictions and reduce taxes, while they reduced the estimation of the possibility of a commercial war.
He stated that the recent declines in the stock market, which started last week, reflects the amendment of these bets.
“It is a complete change of what the markets expected,” he added, noting that investors also respond to indications that companies and families have begun to stop spending due to uncertainty, which may harm economic growth.