U.S. stock market loses $5 trillion in three weeks

The U.S. stock market has lost $5.28 trillion in three weeks, with the S&P 500 dropping 10% from its peak. This downturn is driven by escalating trade war tensions, slowing economic growth, and a significant decline in AI-related stocks like Nvidia. The market's decline began after the S&P 500 reached a high on February 19, 2025. Fresh tariffs on Canadian steel and aluminum have increased investor anxiety, while key economic indicators show weakening consumer confidence and poor sales outlooks from major retailers. Despite the losses, the S&P 500 remains overvalued, trading at 24.1 times its earnings. Investor sentiment is low due to uncertainty surrounding U.S. trade policies, raising concerns about a potential recession if corporate earnings do not improve.