What has so far indicated a steady decline on the American stock market accelerated strongly on Monday when investors refrained from taking practically all types of risks, writes Bloomberg.
The fall of the tech giants was the largest since 2022 and led to Nasdaq's technology-heavy index plummeting nearly 4 percent. On the cryptocurrency market, bitcoin also fell, by 5 percent to under 80,000 dollars.
The decline is based on a growing concern about, among other things, the US President Donald Trump's trade war, geopolitical changes, and the country's economy. On Sunday, Trump said in an interview that the American economy would go through a "transition period". He did not want to rule out a recession either.
According to Bloomberg, the downward trend on the market shows that the attitude - which was initially welcoming - has changed since Trump was sworn in less than two weeks ago.
It took Trump a few weeks to break the international economic system, probably with a plan to fix and replace it with something "better", says Michael Rosen at Angeles Investment Advisors.
Without a clear idea of what is "better", investors are left with the remnants of the broken global economic framework. As long as we don't see what will replace it, investors will at best be cautious, he continues.
