Background: Stock Market Development 2025
Stock Market Crash in April 2025
On April 7, 2025, global markets experienced a massive stock market crash that caused panic worldwide. This crash led to dramatic losses in Asia and Europe, with attention turning to the reaction of the US markets.
Recovery of the S&P 500
Despite a massive rally on Wednesday that saw the S&P 500 rise by nearly 10%, the chances for a full recovery of the index in 2025 remain low. Historically, the S&P 500 has only fully recovered from a decline of over 15% in a few cases, usually during times when the Federal Reserve supported the economy.
Performance in the First Quarter of 2025
Wall Street closed the first quarter of 2025 with one of its worst performances in ten years. The S&P 500 fell by 4.6%, while the Nasdaq plunged by 10.5%. The Dow Jones limited its losses to 1.3%. In comparison, European markets showed strong performance, significantly outperforming US markets.
Current Developments: Hope for Tariff Resolution with China
The recent recovery of Wall Street is supported by hopes for progress in trade talks with China. This development has positive impacts on market psychology and could improve prospects for the coming days. The rise in S&P 500 futures is a positive sign for investors and indicates a potential stabilization of the markets.
Overall, the situation in the markets remains volatile, and reactions to political developments such as the White House’s tariff policy will continue to play an important role. However, hopes for a trading solution with China could represent a positive impulse for the markets and support Wall Street’s recovery.