Feb 21, 2025

Business Desk

5 triggers of market downturn


The S&P 500 reached record highs over 50 times in 2024, leading to fears of a market correction in 2025.

Source: Pexels


The launch of China's DeepSeek AI chatbot caused a global tech stock sell-off, erasing nearly $1 trillion from markets.

Source: Pexels


S&P 500 companies' earnings per share estimates for 2025 have been revised down by 0.5%, indicating potential profitability concerns.

Source: Pexels


The global employment market is experiencing its longest downturn since 2000, with no signs of recovery in 2025.

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Potential job cuts led by the Department of Government Efficiency (DOGE) have raised concerns about increased unemployment and a possible U.S. recession.

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Recent figures reveal that UK productivity growth remains weak, with significant sectors like retail, energy, and health experiencing declines.

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China's economy faces severe challenges, potentially heading into a recession with deflation setting in and ineffective stabilization efforts.

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The U.S. stock market has experienced increased volatility in early 2025, with technology stocks, particularly in artificial intelligence and semiconductors, facing significant downturns.

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The newly inaugurated Trump administration in 2025 has implemented significant policy changes, including higher tariffs on major trading partners, contributing to market uncertainty.

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Elevated valuations and optimistic market sentiments in the U.S. raise the likelihood of a meaningful market correction in 2025, which could have cascading effects on global markets, including India.

Source: Pexels