The 2025 US stock market crash: What's next for American companies?
Following US President Trump's loud statements and subsequent actions to impose trade tariffs, stock markets plunged.
In response to these actions, other countries also announced that they would also restrict the sale of American goods in their markets
These events led to a collapse of the US stock market and a fall in the value of most American company shares, which had already been declining since the beginning of the year.
In just two days, the S&P 500 and Nasdaq indices lost more than 10%, and the total market losses amounted to more than $3 trillion US dollars.
Trade wars weren't the only cause for a new downward trend . Experts cite the following as the main reasons for the largest decline since 2020:
- Trade wars: introduction of high tariffs on imports from China, the EU and other countries.
- Political instability: threats to remove Fed Chairman Jerome Powell.
- Economic concerns: rising inflation, declining consumer confidence, and recession fears
As of April 2025, the following sectors suffered the greatest losses as a result of the US stock market crash, primarily those sensitive to macroeconomic risks, trade restrictions, and declining consumer demand:
| Sector | Reasons for the fall | Average fall |
|---|---|---|
| Technologies | Trade wars, rising rates, correction after overheating | -25% to -40% |
| Consumer goods | Declining demand, rising prices, reduced household spending | -20% to -35% |
| Semiconductors | Dependence on global supply chains, restrictions with China | -25% to -30% |
| Financial sector | Recession risks, pressure on banks, declining margins | -15% to -25% |
| Advertising and media | Reduction of companies' marketing budgets | -20% to -30% |
It is not surprising that the hardest hit in these sectors of the economy were the securities of the most popular and well-known companies:
| Company | Sector | Fall since the beginning of 2025 |
|---|---|---|
| Tesla (TSLA) | Electric Vehicles / Technology | −40% |
| Alphabet (GOOGL) | Technology / Advertising | −35% |
| Apple (AAPL) | Consumer technologies | −32% |
| Intel (INTC) | Semiconductors | −31% |
| Trade Desk (TTD) | AdTech / Advertising | −29% |
| Deckers Brands (DECK) | Consumer goods | −27% |
| Nvidia (NVDA) | AI / Semiconductors | −25% |
| Meta Platforms (META) | Social Media / Advertising | −24% |
| Amazon (AMZN) | E-commerce | −22% |
| Jefferies Financial (JEF) | Financial services | −21% |
It's not entirely clear why some of the stocks on the list have fallen, though, as these companies will be largely unaffected by the trade war. Perhaps they've simply succumbed to the overall trend and will recover their value soon.
Opportunities for Investors: Crisis as an Opportunity
The US stock market crash is not only a cause for concern, but also a unique window of opportunity for long-term investors.
History has proven time and again that during periods of sharp decline in stock prices, it is possible to acquire strong companies at significantly reduced prices, thereby achieving maximum growth potential in the future.
Historical examples of restorations:
Dot-com crash (2000–2002)
- The Nasdaq index fell by more than 75%
- Amazon shares were trading below $6 (now > $3,000 pre-split)
The recovery took several years, but brought investors dozens of times the profit
Financial crisis (2008–2009)
- The S&P 500 index has lost more than 50%.
- Banks, automakers, and IT companies were all on the brink of collapse
From 2009 to 2020, the market grew more than 5 times
Coronavirus collapse (March 2020)
- Markets fell 35% in 1 month
However, by the end of the year, historical highs were renewed and technology sector companies showed explosive growth.
Therefore, in the current situation, it is up to you to decide whether to sell your existing shares of American companies, wait for a recovery, or perhaps buy more.
