why is the stock market crashing

The stock market crash in 2025 is largely attributed to escalating trade wars and aggressive tariff policies initiated by the U.S. administration, especially under President Donald Trump during his second term. These policies heightened international tensions, increased economic uncertainty, and triggered widespread panic selling across global markets starting in April 2025. Alongside the tariff-driven tensions, a bond market sell-off occurred with a sharp spike in yields due to waning investor confidence in U.S. fiscal policy, which further exacerbated market volatility and contributed to the crash. Other contributing factors include rich market valuations, uncertainty over Federal Reserve policies, fears of global recession, geopolitical conflicts, rising inflation, and corporate debt pressures. These elements create a fragile market environment susceptible to sharp corrections, which is why many experts see the possibility of significant downturns or corrections in 2025 rather than a guaranteed collapse. In summary, the 2025 stock market crash is driven by a complex mix of aggressive trade policies, economic uncertainty, rising inflation, bond market turbulence, and ongoing global geopolitical tensions, leading to panic selling and increased volatility in financial markets.