The U.S. stock market is experiencing a significant sell-off as concerns mount over President Trump’s willingness to endure economic pain for his goals. The S&P 500 and Dow Jones are down, with the stock market facing volatile swings amid uncertainty surrounding tariffs. The economy shows signs of weakening, reflected in increased pessimism and indicators suggesting a possible contraction. Trump’s focus on bringing back manufacturing jobs and Treasury Secretary Bessent’s mention of an economic “detox” period add to the market’s unease.

Despite stable job market conditions and solid economic performance in 2024, forecasts for 2025 are being revised downward due to escalating tariff tensions. Goldman Sachs has lowered its growth estimate, citing the impact of larger-than-anticipated tariffs. Concerns over tariffs are dominating market sentiment, overshadowing other factors.

Tech stocks, including Nvidia and Tesla, have seen sharp declines, with Tesla’s stock suffering due to concerns about its association with the government. Companies reliant on consumer spending, like United Airlines and Carnival, have also experienced stock drops. Investors are flocking to safer investments like U.S. Treasury bonds, driving prices higher and yields lower.

While uncertainty looms, dealmaking continues on Wall Street, with notable acquisitions announced. Globally, European indexes fell, following a mixed session in Asia where China reported falling consumer prices, indicating economic weakness. The market remains cautious amidst ongoing turbulence and evolving economic indicators.