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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.

Paphos Wins Two Awards For Long-Term Tourism Strategy

The Paphos regional tourism board, Etap Paphos, said on Tuesday that its “Paphos – Unleash Your Senses” campaign has secured two industry awards, underscoring the region’s long-term effort to strengthen its position as an international tourism destination.

Recognition For Strategy, Not Just Promotion

The campaign won gold at the Cyprus Tourism Awards 2025 in the Strategy & Innovation – Timeless Presence category and bronze at the Marketing Achievements Awards 2025 in Integrated Marketing.

Etap Paphos said the honours reflect more than a successful promotional initiative. They also validate a broader collaborative model developed over the past seven years to support the region’s tourism growth.

A Public-private Model Built Over Seven Years

The strategy was designed around a shared long-term vision, bringing together public institutions and private-sector partners under a single destination marketing framework.

According to the board, it was the first organised effort in Cyprus to successfully align public authorities and private businesses behind one unified tourism strategy. That model, it said, has since become a reference point for how coordinated action can improve a destination’s competitiveness in international markets.

Partnership At The Core Of The Campaign

The success of the campaign was credited to the contributions of a broad network of partners and stakeholders, including the Paphos Regional Board of Tourism, the Cyprus Hotel Association’s Paphos district branch, Hermes Airports, Eurobank, participating hotels and other supporting organisations.

Special recognition was also given to AZTECH, the agency responsible for the campaign’s strategic planning and execution. The board said the agency’s expertise has been central to expanding and reinforcing Paphos’s international presence.

Why The Awards Matter

“These distinctions carry deep significance as they celebrate more than just a successful advertising campaign,” the tourism board said. It added that the awards highlight the value of sustained cooperation and shared objectives over short-term promotional activity.

The recognition comes as Paphos continues working to position itself as a year-round, modern, sustainable and smart tourism destination.

“Elevating the profile of Paphos as a year-round highly modern, sustainable and smart travel destination remains an ongoing effort that relies entirely on the continued commitment and contribution of all partners,” the board said.

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