Breaking news

Market Volatility Hits 5-Year High Amid Trump’s Tariff Turmoil

Global stocks took another hit on Monday as President Donald Trump intensified his stance on tariffs, raising fears of a recession. Investors grappled with the fallout from the policy shift in a chaotic trading session, with volatility reaching levels unseen since the early days of the COVID-19 pandemic.

Key Facts

  • US stocks fell further on Monday, continuing last week’s heavy losses that erased trillions in market value.
  • The Dow Jones Industrial Average dropped 350 points (0.9%), the S&P 500 slipped 0.2%, while the Nasdaq edged up 0.1%.
  • At market open, losses were more dramatic: Dow fell 1,320 points (3.4%), S&P 500 dropped 3.9%, and Nasdaq lost 4.2%.
  • A brief rally occurred after unconfirmed reports suggested a temporary tariff suspension, pushing the S&P 500 up 6%, but stocks tumbled again after the White House dismissed the claim.
  • Since Trump’s “Liberation Day” speech on Wednesday, the Dow has fallen 10% (4,300 points), and both the S&P 500 and Nasdaq have each dropped 11%.
  • Goldman Sachs warned of a possible recession if tariffs remain, while JPMorgan Chase CEO Jamie Dimon cautioned that tariffs could drive inflation even higher.

Volatility Hits Pandemic-Era Highs

The CBOE Volatility Index (VIX)—a key measure of market uncertainty—closed at its highest level since April 2020, when stocks collapsed due to pandemic lockdowns. The VIX surged as S&P 500 swings widened between gains of 3.4% and losses of 4.7%.

Trump Pushes For Fed Rate Cuts

Despite market turmoil, Trump remained steadfast on tariffs. On Truth Social, he urged the Federal Reserve to cut interest rates, falsely claiming, “There is no inflation.”

Economists widely agree that tariffs will worsen inflation, which already exceeds the Fed’s 2% target. The Federal Reserve held a closed-door meeting on Monday to discuss the situation.

Trump appeared unfazed by the stock crash, even sharing a post claiming he was intentionally triggering it.

Bear Market Watch

A bear market occurs when a stock index falls 20% or more from a recent high. Before these tariff-driven declines, the last bear market occurred in 2022, when inflation soared to a 40-year high, prompting aggressive rate hikes by the Federal Reserve.

Biggest Stock Losers From Tariffs

Tech giants suffered major blows on Monday:

  • Apple fell 4%, adding to last week’s 15% decline.
  • Tesla dropped 3%, also down 15% since Thursday.

S&P 500 On The Edge Of A Bear Market

  • Nasdaq officially entered a bear market on Friday.
  • S&P 500 briefly fell over 20% from its February peak before paring losses to 18%.
  • Dow Jones is down 16% from its December record high, while the Nasdaq is down 23% from its peak.

Looking Ahead

With markets in turmoil and inflation concerns mounting, all eyes remain on the White House and the Federal Reserve as investors brace for more uncertainty in the weeks ahead.

Cyprus Tourism Shows Strength As Clean Monday Hotel Bookings Surge

Hotels Embrace A Bright Outlook

Recent figures point to growing momentum in hotel reservations ahead of the Clean Monday weekend, signaling renewed confidence in Cyprus’ tourism sector. Christos Angelides, Director of PASYXE, emphasized the positive trend while also underscoring the need to gradually extend the tourism season beyond traditional peak months.

Favorable Conditions And Festive Spirit

Angelides noted that bookings recorded during the past weekend reached encouraging levels, a development attributed to multiple converging factors. The return of sunny weather after prolonged rainfall, coupled with the festive aura of carnival events and children’s parades in cities such as Nicosia, Limassol, and Paphos, has motivated many to opt for short getaways. This seasonal momentum is further boosted by the strategic initiatives of local hotels, many of which are curating special menus for Clean Monday events, offering guests an enhanced stay experience by keeping them on-premise.

Positioning For The Off-Season

Despite the positive indicators, Angelides cautioned that average occupancy rates of 25%–30% highlight the need for continued innovation rather than complacency. He described the current period as part of a longer process of building winter tourism and pointed to opportunities in conferences, corporate events and niche travel segments as potential drivers of year-round demand.

Expanding Air Connectivity and Collective Ecosystem

Industry expectations are further supported by expanded air connections from established markets such as the United Kingdom and Israel, alongside increased routes from Armenia, Romania, Bulgaria, Latvia and Poland. While recovery in the German market remains gradual, broader improvements in connectivity continue to strengthen overall tourism prospects. Angelides added that sustainable year-round tourism depends on a wider ecosystem that extends beyond accommodation to include restaurants, museums, cultural venues and community events.

The Path Forward

Cyprus continues to benefit from strong competitive advantages in climate, accessibility and hospitality infrastructure. With coordinated planning across tourism stakeholders and consistent investment in diversified offerings, the sector is positioned to contribute more steadily to the national economy and support a more balanced, all-season travel model.

Uol
Aretilaw firm
The Future Forbes Realty Global Properties
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter