Fact Check: Is the stock market crashing

Fact Check: Is the stock market crashing

Published July 13, 2025
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VERDICT
Partially True

# Fact Check: "Is the stock market crashing?" ## What We Know The claim regarding the stock market crashing is rooted in events that began on April 2...

Fact Check: "Is the stock market crashing?"

What We Know

The claim regarding the stock market crashing is rooted in events that began on April 2, 2025, when global stock markets experienced significant declines following the announcement of new tariff policies by U.S. President Donald Trump. This event, referred to as "Liberation Day," marked the introduction of sweeping tariffs that affected nearly all sectors of the U.S. economy, leading to panic selling across global markets, including the United States (source-1).

On April 3, 2025, the Nasdaq Composite lost 1,600 points, marking the worst sell-off since the COVID-19 pandemic, while the S&P 500 dropped 4.84% and the Dow Jones fell by 1,679 points (source-1). Within two days, the Dow Jones index lost over 4,000 points, representing a 9.48% decline, which was noted as the largest two-day loss in history (source-1).

Despite these significant declines, the market showed signs of recovery shortly after, with the S&P 500 turning positive for the year by May 13, 2025, and reaching all-time highs by June 27, 2025 (source-1).

Analysis

The assertion that the stock market is crashing is partially true. The initial response to the tariff announcements was indeed catastrophic, leading to substantial losses across major indices. The immediate aftermath saw the S&P 500 and Dow Jones experiencing their worst declines in years, which aligns with the claim of a market crash (source-1).

However, it is crucial to consider the context and subsequent recovery. Following the initial panic, the markets rebounded significantly, with the S&P 500 and NASDAQ reaching record highs within a couple of months (source-1). This volatility indicates that while there was a crash, it was not sustained, and the market demonstrated resilience in the face of adverse conditions.

The sources used in this analysis vary in reliability. The Wikipedia entry provides a comprehensive overview of the events and their implications, but it may lack the depth of analysis found in financial news articles. The CNBC report offers real-time data and insights from market analysts, which adds credibility to the understanding of market reactions (source-2).

Conclusion

The claim that the stock market is crashing is partially true. While there was a significant and immediate decline in stock prices due to the introduction of new tariffs, the market has shown recovery and resilience in the following months. Thus, the situation reflects a complex interplay of market dynamics rather than a straightforward crash.

Sources

  1. 2025 stock market crash
  2. Dow falls 280 points, S&P logs weekly loss as Trump trade ...
  3. Q3 2025 Stock Market Outlook: After the Rally, What’s Still ...
  4. United States Stock Market Index - Quote - Chart
  5. Q3 2025 Stock Market Outlook: After the Rally, What's Still ...
  6. Stock Market Chart By Month 2024 To 2025 | StatMuse Money
  7. Stock Market Forecast: As Nasdaq Notches New Highs ...
  8. 2025 Mid-Year Outlook: U.S. Stocks and Economy

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