Wed Apr 09 12:02:18 UTC 2025: ## Wall Street Fears Another Bear Market Amidst Trump’s Tariff Blitz

**New York, April 9, 2025** – Wall Street is bracing for a potential bear market triggered by the Trump administration’s sweeping new tariffs on imported goods. The imposition of a 10% baseline tax on all imports, coupled with higher rates on nations with trade surpluses, has sparked fears of a global economic downturn.

The S&P 500 index, a key market indicator, is down 17.6% from its February high, already exhibiting characteristics reminiscent of the swift 2020 bear market. While the index closed slightly lower Monday, the Dow Jones Industrial Average fell more significantly, and the tech-heavy Nasdaq, already in bear market territory, saw modest recovery.

Economists warn that tariffs, acting as a tax passed on to consumers, fuel inflation and invite retaliatory measures from trading partners, creating a ripple effect of economic damage. The uncertainty surrounding tariffs also discourages business investment, further hindering growth. These concerns are exacerbated by existing signs of a slowing US economy.

Historically, bear markets, defined as a 20% or more drop from recent highs, last an average of 13 months to reach their lowest point and 27 months to recover. While faster declines tend to be shallower, the current situation mirrors the rapid onset of previous market crashes.

Financial advisors urge investors to consider their risk tolerance and long-term financial goals. While selling stocks might seem like a way to mitigate immediate losses, it also prevents potential gains that often occur during or immediately after bear markets. Historically, the market has recovered from every previous bear market, eventually reaching new highs. However, investors are advised to only invest money that won’t be needed for several years.

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