Stock Market Faces Turmoil as Recession Fears, Tariffs, and AI Competition Weigh on Investors

Economic uncertainty, new tariffs, and a shift in AI dynamics contribute to significant declines in major indexes and tech stocks.

The S&P 500 and Nasdaq 100 have dropped 6.1% and 8.8%, respectively, since February 19, reflecting heightened market volatility.
Recession concerns grow as labor market signals weaken, with private-sector layoffs expected to rise and unemployment ticking up to 4.1%.
President Trump's tariffs on imports from China, Canada, and Mexico have raised recession risks and could drive inflation, complicating the Federal Reserve's monetary strategy.
Major U.S. AI companies, including Nvidia, Microsoft, and Alphabet, have suffered significant stock declines due to competitive pressure from Chinese firms like DeepSeek.
Nvidia's market cap has fallen by $1 trillion since January, driven by fears of overvaluation, trade policy impacts, and shifting investor sentiment on AI infrastructure spending.