Stocks haven't fallen this much since 2020. Their recovery could look different this time.

The S&P 500 (^GSPC) conscionable saw its worst week since COVID-19 brought the satellite system to a halt successful March 2020.

The benchmark scale fell astir 9% betwixt March 31 and April 4 successful a tariff-fueled sell-off. Similarly, arsenic the pandemic dispersed passim the United States, stocks mislaid 12.5% successful 5 trading sessions successful 2020. But marketplace experts accidental stocks' betterment volition look antithetic this clip around.

While the S&P 500 returned to grounds highs conscionable 4 months aft the pandemic crash, experts don't deliberation investors should expect specified a speedy comeback successful 2025.

"At this point, you're beyond the swift rebound story," Renaissance Macro caput of economics Neil Dutta told Yahoo Finance. "This is simply a assurance shock, and truthful it's going to instrumentality a small spot of clip to get that back."

The caller daze to markets has travel from President Trump himself. With tariffs expected to deed their highest level successful a century, consumers and businesses are feeling worse astir the trajectory of the US economy. This has shaken capitalist assurance too, with aggregate caller bids to rally disconnected the marketplace bottommost failing successful caller days.

The largest quality betwixt this daze and the 1 that came with the pandemic is that the president has a imaginable "off" power for the chaos this time. But, astatine this point, Trump has shown fewer signs of relenting.

"We request to spot immoderate grounds of immoderate dialog very, precise quickly," Fundstrat planetary caput of method strategy Mark Newton told Yahoo Finance connected Tuesday erstwhile discussing what could halt the market's escaped fall.

The caller marketplace sell-off has been driven by fears that Trump's tariffs could halt US economical growth. Some reason they could adjacent bring a recession.

In anterior periods, similar the pandemic, erstwhile economical maturation has slowed, the Federal Reserve has slashed involvement rates. This clip around, the Fed isn't expected to instantly travel to the rescue.

Tariffs are expected to dilatory maturation but besides boost inflation. With markets reeling past Friday amid a two-day 11% sell-off successful the S&P 500, Fed Chair Jerome Powell said it was "too soon to accidental what the due monetary argumentation effect volition beryllium to these caller policies."

Markets person been moving connected each incremental tariff header arsenic investors effort to terms successful their impact. But for businesses, the process isn't that easy. Deciding however to run with 54% tariffs connected exports from China, lone for them to beryllium turned into 104% tariffs a fewer days later, provides an further unreality of uncertainty that could dilatory firm investment.