The tariff policy has affected the US stock market, and the

Recently, the US stock market has been struggling to hold on.

This week, the S&P 500 index experienced its largest weekly decline since September last year, while the Nasdaq index fell for the third consecutive week, setting a record for the longest consecutive decline since early August last year.

Trump's return to the White House once made Wall Street ecstatic, with the S&P 500 index surging over 5% in just one month after election day.

But soon the situation changed dramatically. The US stock market began to fluctuate at a high level and entered a sustained downward channel in late February.

As of March 7th, the S&P 500 index has fallen more than 6% since hitting its peak on February 19th, wiping out an additional $3.4 trillion in market value added since election day.

Why do US stocks continue to decline?

Firstly, the unpredictable tariff policies have hurt Wall Street a lot.

The White House announced on the 6th that it will temporarily suspend tariffs on Mexican and Canadian goods until April 2nd. Just a few days ago, the United States imposed a 25% tariff on products from these two important trading partners.

Bloomberg reported that repeated policies have led to "extremely fragile market sentiment". Analysts point out that regardless of whether tariffs are implemented or not, this uncertainty alone will continue to make the market uneasy.

Secondly, the deterioration of economic data has raised concerns on Wall Street.

Last month, the growth of manufacturing activity in the United States came close to stagnation, orders and employment indicators shrank, consumer confidence index hit its lowest level since 2021, and real estate market data also disappointed. The unemployment rate has risen to 4.1%, exacerbating concerns about economic resilience. Morgan Stanley and Goldman Sachs have both lowered their expectations for US economic growth.

It can be said that this is directly related to the US tariff policy.

Several economists have warned that imposing tariffs could trigger price increases in the United States, and the "stock god" Buffett has rarely criticized tariff policies.

Buffett stated that punitive tariffs may trigger inflation and harm consumer interests. To some extent, tariffs are an act of war

According to the JPMorgan model, as of March 4th, the probability of a US economic recession reflected by market prices has risen to 31%. Key indicators such as five-year US treasury bond and base metals show that the possibility of economic recession is about 50%.

Morgan Stanley strategists believe that the combination of a weak US economy, deteriorating business and consumer confidence, and the implementation of tariff policies has made consumers and businesses more pessimistic, which in turn has raised concerns about an economic recession.

Thirdly, the aggressive measures taken by the US federal government have also made Wall Street feel uneasy.

The government efficiency department continues to push for large-scale reduction measures, cutting tens of thousands of federal jobs.

Cutting government departments and corresponding large-scale layoffs will inevitably lead to an increase in unemployment and a decrease in consumer spending, which will increase the downside risk of the US economy.

According to Challenger, an American job agency, Grey & Christmas  According to data released by the company on the 6th, the number of layoffs in the United States in February reached the highest level in nearly five years due to the federal government cutting a large number of employees.

The data also shows that in February, American employers laid off more than 172000 employees, up 245% month on month, breaking the highest monthly number of layoffs in July 2020, when the COVID-19 epidemic increased uncertainty.

Is this the 'golden age' that the United States has embarked on?

For now, the response from Wall Street strategists is, "Wear your seat belt, because more volatility is coming