The stock market in 2025 has been impacted by concerns beyond Trump's trade war. Factors such as weakening consumer confidence and a challenging job market have contributed to a sense of uncertainty and fears of a recession. While the trade war has played a significant role in recent market fluctuations, additional data points suggest underlying economic instability, causing unease among investors as the second quarter commences.

One major concern is the decline in consumer confidence, with surveys indicating a negative outlook on the economy. CEOs are also expressing pessimism, with ratings of business conditions dropping compared to earlier this year. The mood on Wall Street reflects this lack of confidence, resulting in cautious trading strategies.

Furthermore, the once-promising AI sector is facing challenges in 2025. Despite its past success in driving market growth, questions about the sustainability of AI investments have arisen. Developments, such as the emergence of cost-effective AI tools and uncertainties surrounding the returns on massive AI-related expenditures by companies like Meta Platforms and Amazon, have caused investors to reevaluate their expectations.