10 Things About the 2025 Market Crash Explained

The stock market is currently experiencing heightened volatility, driven by global trade tensions, sharp index declines, and widespread economic uncertainty. These developments have impacted both major companies and investors worldwide, amplifying currency fluctuations and losses.

To help investors make sense of the turbulence, analysts at Profit.com, a global investment platform, have outlined 10 key insights that explain what’s behind the current market downturn — and what investors should keep in mind.

1. US Tariffs Sparked the Slide

The initial decline began in February, but losses accelerated after the U.S. announced broad new tariffs, sparking fears of a global economic slowdown. The S&P 500 dropped nearly 5%.

2. China Hits Back

China responded with retaliatory tariffs on U.S. imports, escalating the trade war between the two largest economies. This pushed the S&P 500 down nearly 6%, marking new yearly lows.

3. 90-Day Pause Brought Little Relief

The U.S. temporarily suspended tariff hikes for 90 days — but not for China. The uncertainty around what comes next keeps companies and consumers on edge, especially with steep 145% tariffs looming on imports from China.

4. The Five Times in History

Although the S&P 500 index’s decline is not yet considered dramatic — since it has fallen by less than 20% from its peak — the speed of the drop is alarming. In just two days, stocks lost over 10%, a rare event seen only during historic crashes like Black Monday (1987), the Dotcom bust (2001), the 2008 crisis, and the COVID-19 crash in 2020.

5. Welcome to the Bear Market

The S&P 500 approached a 20% drop — the threshold for a bear market. Meanwhile, the Russell 2000 and Nasdaq have surpassed it. This is surprising, especially since the current U.S. administration was seen as pro-business.

5. The Bear Market is Here

The S&P 500 is approaching a 20% decline — threshold that marks entry into a bear market. Meanwhile, the Russell 2000 — the small-cap index — and Nasdaq have already surpassed this level. This is surprising, especially since the current U.S. administration was seen as pro-business, particularly supportive of small businesses by promising to relocate production back to the United States.

7. iPhones Could Get Pricier

Apple’s reliance on overseas manufacturing makes it highly exposed to new tariffs. The iPhone 16 Pro could see production costs jump by up to $300 — a hike likely to be passed on to U.S. consumers. In just a few months, Apple has lost $1.2 trillion in market value, dropping from $3.9T to $2.7T — a loss greater than the total value of any other company besides Apple itself, Microsoft, Nvidia, Alphabet, Amazon, Saudi Aramco, and Meta.

8. Warren Buffett is Right Again

Despite the market decline, Berkshire Hathaway shares have risen by 3% since the beginning of the year, thanks to Warren Buffett’s defensive strategy: selling stocks and investing in short-term bonds. However, it’s worth noting that in the past, the lack of investments negatively affected the portfolio’s performance.

9. Crypto Mirrors the Chaos

The sell-off hasn’t spared crypto markets. Bitcoin and major altcoins have dropped sharply, echoing the broader risk-off sentiment. As traditional markets fall, investors are pulling back from speculative assets, revealing just how correlated crypto has become with global equities.

10. Investors Shouldn’t Panic

Market crashes often lead to buying opportunities. Historically, stock markets have returned around 10% annually in the long run. Every correction has been overcome, sooner or later — as in the 2008 financial crisis (which took nearly 5 years to recover) or the COVID-19 pandemic (which took half a year). The key is to stay calm, avoid emotional decisions, and focus on long-term fundamentals.

📉 Is Now the Right Time to Invest in This Volatile Market?

Before jumping into the markets during uncertain times, ask yourself: are you prepared?

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