The week of Mar. 9 to 15, the U.S. stock market has lost $4 trillion in value. Among many factors that influence the economy, it is difficult to pinpoint the reasoning behind this downward trend, though publications such as CNN claim that tariffs imposed on foreign countries are to blame, including China and Canada. On Tuesday, Jim Cramer, CNBC host, said that the falling price of stocks serves as what he describes as a “screaming” warning to President Trump to change the course of his tariffs.
Senior Max Le comments on the recent plunge of the stock market, calling it a “crisis” and indicating economic policies along with large-scale layoffs.
“This is a crisis because it shows a failure of/response to Trump’s economic policies and mass layoffs which will likely continue as he denied responsibility for the fall,” Le said.
Le explained that the market has been “overpriced” due to the large amount of money pumped into the economy during COVID. “This fall is on its way to a correction to how the market would’ve grown since 2019,” Le added.
As an investor, Le explained his situation. “I do invest, but it’s all in stocks, so I can’t sell to take the loss only to buy again,” Le said. “I can’t do anything with the stock market during school hours because of the phone ban, so I’ve just been taking losses.”
Despite the recent downturn, Le plans to wait it out. “I’ll just wait out the market, it’ll eventually rebound but likely not for a while as long as these mass economic changes continue with lack of responsibility,” Le said.
A company’s ownership is represented by its stocks. Purchasing stock entitles you to a tiny portion of the business. The price of a stock often rises when the company performs well and falls when it suffers.
Recent significant drops in the stock market:
- Dow Jones (Dow): Tracks 30 large companies like Apple, McDonald’s, and Coca-Cola.
- S&P 500: Follows 500 large companies from different industries (tech, healthcare, and finance).
- Nasdaq: Focuses mostly on technology companies (Google, Amazon, and Tesla).
Essentially, this means overall stock prices declined, with big companies hit the hardest.
