After the calm of the trade war .. Do American stocks recover soon?

The American stock market has seen sharp fluctuations in recent weeks, as the main indicators have declined significantly. But with the appearance of calm in the trade war between America and China, hope began to recover the markets, according to a report published by the “Motley Fall” platform.

Why did the American stock market indicators decline?

Indicators such as Standard & Poor’s 500 fell 0.74 %, while the Dow Jones Industrial Index and the Nasdak compound index significantly decreased. This came after US President Donald Trump announced the imposition of new customs duties on imports, which raised fears of high prices on American companies and consumers, and thus the negative impact on economic growth.

Although the Trump administration later decided to suspend these 90 days to negotiate, the fluctuations continued.

Also read: How does trade war affect global investment in 2025?

Are the indicators returned to their previous levels?

Despite some recovery, the American stock indicators did not recover their registered levels at the beginning of the year. A noticeable exception was China, facing customs definitions of up to 145 %. Trump has announced a temporary exemption for some electronic products such as smartphones and electronic chips, which helped indicates some gains.

Also read: The most poverty countries are threatened with paying the larger bill for Trump fees

Does history repeat itself in the stock market?

Past experiences show that fluctuations and collapses are not new to financial markets. From the collapse of 1929 to the Black Monday 1987, the markets passed through many crises, but they have always recovered over time.

Today, analysts believe that markets have become more flexible compared to economic stagnation in 2001, with faster economic recovery.

Are we on the threshold of economic stagnation?

So far, there is no official announcement of the entry into the American economy in a stagnation. However, some economic indicators such as consumer confidence and the possibility of high prices indicate signs of economic slowdown.

The International Monetary Fund has reduced its expectations for US economic growth to 1.8 % due to the trade war.

How should investors behave?

In light of the current fluctuations, experts believe that this time may represent a golden opportunity for long -term investment. Strong companies are able to overcome crises, and the major stocks that have declined may offer great gains as markets recover in the future.