U.S. Stock Market Faces Volatility Amid Trade Policy Challenges

The U.S. stock market is experiencing significant volatility due to a recent trade policy overhaul. As major companies brace for financial results, investors remain cautious. Key players like Tesla and Alphabet are in focus. Economic forecasts suggest potential recession risks, adding to the market's uncertainty.

A series of U.S. company earnings reports expected this week will challenge an already turbulent stock market, shaken by recent U.S. trade policy changes. President Donald Trump's tariff announcements have led to heightened market volatility reminiscent of the early COVID-19 pandemic days.

The S&P 500, having rebounded slightly last week, fell again, sitting 14% below its February peak. Companies like Tesla and Alphabet, previously market leaders, are under scrutiny for their upcoming financial results, especially as tariffs continue to impact the economic landscape.

Economists are increasingly wary of a recession, with the odds now at 45% for the next year. With corporate reports, such as United Airlines', highlighting economic risks, investors are cautious. Meanwhile, scrutiny is also on the Federal Reserve, as calls grow for action on interest rates amid volatile market conditions.

(With inputs from agencies.)