The U.S. stock market has lost approximately $5 trillion in market value over the past three weeks, driven primarily by aggressive trade policies under President Donald Trump.

The decline intensified as the S&P 500 dropped over 10%, officially entering correction territory. Major tech and automotive companies, including Tesla, were among the hardest-hit stocks, contributing significantly to market volatility.

Investor confidence has been severely shaken by Trump’s recent imposition of large-scale tariffs targeting imports from critical trading partners, notably China, Canada, and Mexico. These tariffs have disrupted global supply chains and led to retaliatory trade measures, exacerbating fears of a looming economic downturn.

Adding to investor worries, recent consumer confidence data revealed a steep decline to 57.9, significantly below economists’ expectations. Market analysts now predict the Federal Reserve will respond with interest rate cuts, potentially as early as September, in an attempt to stabilize economic conditions.

In response to this uncertainty, investors have shifted toward traditional safe havens, notably U.S. Treasury bonds and gold, driving gold prices toward a record $3,000 per ounce.

Financial experts warn that continued trade tensions and unpredictable policy shifts could prolong market instability, urging close monitoring of upcoming Federal Reserve actions and government policy responses.