Five Years After Covid Crash Markets Face New Reckoning
Briefly

Five years after the Covid crash, the U.S. economy has seen a remarkable 155% rise in the S&P 500. However, inflation peaking at 9.1% in 2022 has created economic disparities and heightened societal unrest. The recent transition from expansive fiscal policies to a more protectionist framework marks a critical juncture for the economy, with tariffs and deregulation on the rise. Current market responses show a 7.3% decline in the S&P 500 since February 2025, and consumer confidence has dipped below Covid low levels, indicating a major shift in investor sentiment toward bearish outlooks.
As of March 26, 2025, the S&P 500 has declined 7.3% from its peak, revealing a notable shift in sentiment among investors and consumers alike.
The repercussions of Covid extend beyond prosperity, as inflation has exacerbated economic disparity and contributed to rising populism and global unrest.
The U.S. economy now stands at a pivotal juncture, transitioning from excess-driven growth policies to a protectionist framework under the second Trump administration.
Consumer confidence is lower today than it was at the Covid low five years ago, reflecting a significant shift in market sentiment as bearish views increase.
Read at Forbes
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