The S&P 500 index fell 1.4% on Thursday (March 13), down more than 10% from its record high on February 19, officially entering a correction zone. This decline reflects market concerns about the escalation of the tariff war between the United States and its major trading partners, as well as panic about the risk of economic recession.

Confirmation of market performance and correction range

The S&P 500 index is an important indicator for measuring the health of large American companies and the overall stock market. The 10.1% decline this time marks a significant shift in market sentiment, and investors' concerns about trade tensions have significantly intensified.

The Nasdaq index, which has a high proportion of technology stocks, confirmed last week that it has entered a correction zone, indicating that the technology sector is also affected by the trade war.

Trade War Escalation and Economic Recession Concerns

US President Trump has threatened to impose a 200% tariff on EU wine and brandy unless the EU lifts tariffs on US whiskey. This statement has intensified market panic about further escalation of the trade war.

The trade war may not only push up inflation, but also hinder global economic growth, thereby exerting sustained pressure on the US stock market.

Policy uncertainty and market turbulence

Trump's unpredictable trade policies, including tariff policies, have plunged the US market into turmoil. Investors are struggling to cope with policy uncertainty and its potential impact on the economy and corporate profits.

US Treasury Secretary Besson stated that the Trump administration is focused on medium - to long-term market and economic gains, rather than short-term volatility. However, the market still has doubts about whether the "detoxification period" will lead to economic recession.

Government spending and market confidence

Investors are also concerned about whether Congress will pass a continuing resolution to ensure that the federal government continues to operate after Friday's spending deadline. Besent warns that failure to pass the spending bill will have an "extremely destructive" impact on the market and economy.

The risk of government shutdown further exacerbates market uncertainty and may have a negative impact on investor confidence.

conclusion

The S&P 500 index has entered a correction zone, reflecting deep concerns in the market about the escalation of the trade war, policy uncertainty, and the risk of economic recession. Despite the US government's emphasis on the medium to long term economic outlook, short-term market turbulence and policy risks may still exert sustained pressure on the US stock market. In the future, the progress of trade wars, the passage of government spending bills, and the performance of economic data will become key factors affecting market trends.