US Markets Record Worst Day In 2025; Will Indian Markets Crash On Monday? | NDTV Profit

Summary

The US stock market recently faced one of its worst declines due to fears of inflation and new tariffs imposed by President Trump. This led to steep drops in key indices like the S&P 500, NASDAQ, and Dow Jones. A significant dip in consumer sentiment further fueled concerns. The impact was seen in major stocks like Microsoft, Google, Meta, and Tesla. India's markets, including Nifty50 and Sensex, also suffered from these global factors, raising questions about a potential crash in India’s stock market. The situation remains uncertain, with the possibility of further volatility in the coming days.

Takeaways

• 😀 The US stock market recently experienced a significant decline, driven by fears of inflation and new tariff policies under President Trump.
• 😀 A report by S&P Global highlighted a significant slowdown in US business activity, with growth expected to drop to a 17-month low.
• 😀 The S&P 500 and Dow Jones Industrial Average both dropped by 1.7%, marking their steepest 1-day decline since December 18, 2023.
• 😀 The NASDAQ also fell by 2.1%, reflecting the overall downturn in the US stock market.
• 😀 The University of Michigan's consumer sentiment index dropped by nearly 10%, raising concerns about rising inflation.
• 😀 Trump's tariff policy is expected to lead to higher consumer prices, as importers pass on the costs to consumers.
• 😀 The 5-year inflation outlook in the US reached 3.5%, the highest since 1995, further fuelling inflation fears.
• 😀 Key US stocks, including Microsoft, Google, and Amazon, saw declines, with Nvidia experiencing the largest drop at 4.05%.
• 😀 The Indian stock market, particularly Nifty and Sensex, also suffered declines, influenced by global concerns and persistent FII outflows.
• 😀 Despite the US market downturn, the future performance of Indian markets remains uncertain, with attention on potential market reactions on Monday.

Q & A

What caused the significant decline in the US stock market on Friday?

The decline was primarily driven by a slowdown in US business activity, as reported by S&P Global, concerns about rising inflation due to President Trump's new tariffs, and a significant drop in consumer sentiment.

How did the US stock indices perform on Friday?

The S&P 500 and Dow Jones Industrial Average both fell by 1.7%, marking their steepest 1-day decline since December 18, 2023. The NASDAQ dropped by 2.1%.

What is the reason behind the decline in the University of Michigan's consumer sentiment index?

The decline in the consumer sentiment index by 64.7% in February was due to rising concerns about inflation, largely fueled by President Trump's new tariffs and their impact on consumer prices.

What is the current 5-year inflation outlook according to the survey?

The 5-year inflation outlook has risen to 3.5%, the highest level since 1995.

Which major US stocks were significantly impacted by the market downturn?

Major US stocks impacted included Microsoft (down by 1.90%), Google (down by 2.65%), Meta (down by 1.62%), Nvidia (down by 4.05%), Amazon (down by 2.83%), and Tesla (down by 4.68%).

What was the performance of Indian markets on Friday?

On Friday, India's Nifty50 and Sensex both experienced a decline for the fourth consecutive session, marking their second weekly loss in a row.

What are the primary factors contributing to the decline in the Indian stock market?

The primary factors contributing to the decline in India’s stock market include persistent foreign institutional investor (FII) outflows, concerns over US tariffs, and a lack of major domestic stimulus measures.

How did the US market’s performance affect the Indian stock market outlook?

The decline in the US stock market has raised concerns about the potential for further downturns in the Indian market, particularly on Monday, as investors anticipate global market instability.

What are the broader implications of the rising tariffs and inflation concerns in the US?

The broader implications include higher consumer prices due to tariffs, reduced investor confidence, and a potential slowdown in economic growth, both in the US and globally, which could affect other markets like India.

Why are FIIs (Foreign Institutional Investors) outflows significant for the Indian market?

FII outflows are significant because they reflect a lack of confidence in the Indian market, leading to lower liquidity and potentially deeper market declines. These outflows were a contributing factor to the consecutive losses seen in the Nifty and Sensex.