Global Stock Markets Face Sharp Declines in 2025 Amid Economic Uncertainty and Policy Concerns
As of February 24, 2025, global stock markets are experiencing notable volatility, influenced by economic uncertainties and policy developments.
United States
The U.S. stock market faced significant downturns recently. On February 21, the S&P 500 experienced its most substantial decline in two months, dropping 1.7%, while the Dow Jones Industrial Average fell by 748 points, or 1.7%, and the Nasdaq Composite decreased by 2.2%. These losses were attributed to weaker-than-expected economic reports and concerns over President Donald Trump’s policies, including proposed tariffs and government layoffs.
In pre-market trading on February 24, futures for major U.S. indices showed modest gains, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures rising by 0.5%, 0.5%, and 0.75%, respectively. This uptick suggests a potential recovery following the previous week’s losses.
Australia
The Australian stock market has also been affected, with the S&P/ASX200 index closing 12 points higher at 8,308.20 on February 24, snapping a five-day losing streak. Major banks rallied, offsetting declines in the tech sector. However, over the past eight sessions, Australia’s four major banks have collectively lost over AU$63 billion in market value, influenced by a recent interest rate cut and concerns over rising bad debts.
India
Indian equity benchmarks reached eight-month lows on February 24, with the Nifty 50 and BSE Sensex indices each falling by 1% to 22,568.50 and 74,601.88 points, respectively. The downturn was driven by significant losses in the financial and information technology sectors, amid concerns about U.S. economic growth impacting export-oriented industries.
Global Outlook
The recent market fluctuations are largely attributed to mixed economic signals, policy uncertainties, and sector-specific challenges. Investors are closely monitoring upcoming economic data releases and policy announcements to assess potential impacts on global markets.
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