The US stock market has been on a downward trend since February 20, 2025, with major indices witnessing sharp declines. On March 11, 2025, the weakness continued as the Dow Jones Industrial Average (DJI) dropped by 1.14%, closing at 41,433.48. The Nasdaq, which had already fallen 4% on Monday, saw another 0.18% dip on Tuesday.
Experts believe that the major reason behind this persistent downfall is Donald Trump’s aggressive tariff policies. This uncertainty in the US stock market has also sparked FOMO (fear of missing out) among Indian retail investors as they closely monitor Nifty 50 and Sensex trends. After months of a downward trend, the Indian stock market recently showed some signs of recovery, but concerns still linger.
Trump’s Tariff Policies Fuel Stock Market Instability
Since taking office, Donald Trump has made several bold moves in his trade policies. His tariff hikes on multiple countries, including Canada and India, have led to instability in global financial markets.
Recently, Trump announced a 50% increase in tariffs on all steel and aluminum products imported from Canada. However, he later backtracked on this decision, creating further market confusion. Additionally, his reciprocal tariff policy on India and several other nations is set to take effect in April 2025, raising more concerns for global investors.
Indian Stock Market Faces Uncertainty Amid Global Jitters
After months of decline, the Indian stock market saw a slight recovery starting March 4, 2025, as green candles appeared. However, on March 12, 2025, markets once again witnessed volatility.
- Nifty 50 declined 0.70%, trading at 22,339 around 12:50 PM
- Sensex saw a 0.46% drop, standing at 73,759
Global markets remain weak as uncertainty over Trump’s tariffs continues to weigh on investor sentiment. Analysts believe that a sustained recovery in global markets is unlikely unless there is clarity on trade policies. In fact, further downtrends are expected as the tariff war escalates.
US Vice President’s India Visit: Will It Bring Positive News?
Amid rising tensions, reports suggest that US Vice President JD Vance and his wife, Usha Vance, are planning a visit to India by the end of this month. If the visit takes place before the reciprocal tariffs kick in, it could lead to diplomatic discussions that might ease trade tensions.
Retail traders and market experts are closely watching for official confirmation, as any positive developments could bring much-needed stability to the Indian stock market. However, until official announcements are made, investor concerns remain high.
Global Slowdown Fears Grow
With the US stock market crash showing no signs of slowing down, fears of a global economic slowdown are rising. As trade tensions escalate, Sensex, Nifty 50, and the Indian stock market will remain under pressure, with investors bracing for further volatility.
Market watchers are now waiting to see whether upcoming policy decisions, diplomatic talks, or economic measures will help stabilize global financial markets.