Finance

Why the Stock Market’s Decline Might Continue

Investors might not find relief simply because the calendar flips to April.

According to Truist’s co-chief investment officer, Keith Lerner, the stock market sell-off is "not yet" nearing its end. "We could see some short-term relief if tariffs are announced, but the market’s potential for recovery remains limited," he explained.

Lerner lowered his outlook on stocks from "Attractive" to "Neutral" in late February, just before the most recent wave of selling.

"The bigger picture is that U.S. GDP projections are being revised downward for the first time in years," Lerner noted. "Despite this, forward earnings estimates for the S&P 500 are still rising. Our view is that there are risks to earnings due to the downward revisions in economic forecasts, combined with the pressure tariffs could place on profit margins."

Markets are still on edge, especially with growing concerns about President Trump’s tariffs and the potential for retaliatory actions by trade partners, which could impact both U.S. imports and exports.

On Friday, the Dow Jones Industrial Average (^DJI) dropped 716 points, or around 1.7%. The S&P 500 (^GSPC) fell nearly 2%, and the Nasdaq Composite (^IXIC) plunged 2.7%. The S&P 500 is down 5% year-to-date and is heading toward its worst quarter since September 2022.

Stocks that were once high performers in the "Magnificent Seven," including Tesla (TSLA) and Nvidia (NVDA), are now underperforming.

Globally, stocks continued to face significant pressure on Monday as investors processed President Trump’s recent tariff comments. On Sunday, he told reporters that his anticipated tariff announcement on April 2 would apply to all countries, surprising markets that expected a more targeted approach.

Goldman Sachs’ chief economist, Jan Hatzius, responded by lowering his GDP forecast for 2025 and expressing increased concerns about a potential recession. His colleague, David Kostin, also revised his S&P 500 target for 2025 downward.

TECH

Tech at a Crossroads: How AI Agents Are Shaping the Future

All emerging technologies must eventually live up to their expectations, and for AI agents, that moment has arrived.

The successful implementation of AI agents—systems capable of taking actions and making decisions on behalf of individuals or independently—is crucial for the future of model developers like OpenAI, enterprise software firms such as ServiceNow and Salesforce, consumer leaders like Apple, as well as AI infrastructure companies including Nvidia, cloud providers, and data center operators. And this is without considering the substantial public and private investment capital that is tied to the success of these companies.

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CRYPTO

Tech, Crypto, and AI: The Future of Investment in 2025

The beginning of 2025 has brought its share of economic turbulence, with renewed trade tensions and ongoing inflationary pressures continuing to create uncertainty across global markets.

However, a recent survey indicates that traders and investors are largely unshaken, with 80% expressing confidence in their portfolios' ability to generate positive returns this year.

Conducted by FCA-regulated fintech provider Trade Nation, the survey gathered insights from investors and traders about their outlook for the year ahead, their primary concerns, and the industries they believe will offer the best returns.

Tech, Crypto, and AI Lead Investor Confidence
While traditional safe-haven assets have typically provided a buffer against economic instability, investors are increasingly optimistic about technology-driven sectors.

When asked which industries they were most confident about in 2025, 36% of respondents chose technology as their top pick, followed by cryptocurrencies and blockchain (32%). AI and automation also ranked highly, with 31% of respondents naming it a top area of confidence—reflecting the rapid advancements in generative AI and its growing integration across various industries.

Other sectors gaining investor confidence include real estate (23%), renewable energy (21%), and healthcare and biotech (19%). These results highlight a sustained interest in innovation-led industries, despite the ongoing economic challenges.

Younger Investors Lead the Optimism
Confidence varied by age, with younger investors expressing the most optimism. Among respondents aged 24-34, 88% expected positive returns in 2025, compared to just 66% of those over 65, highlighting a generational divide in risk tolerance and market sentiment.

Macroeconomic Concerns Persist
Despite the widespread optimism, concerns about economic downturns remain. Over half (53%) of respondents cited the potential for a recession as their biggest worry, followed by inflation (46%), market volatility (40%), and geopolitical instability (36%).

Interest rate fluctuations were a concern for 36% of investors, while 19% expressed worry about the potential disruption AI could cause to industries and traditional investment strategies.