What has happened?
Stock markets around the world have fallen after an important announcement by US President Donald Trump.
A crash in the stock market means the value of many big companies has suddenly gone down. This can cause problems like job losses, business trouble, and weak economies in many countries.
What is the stock market?
The stock market is a place where people buy and sell shares. A share is a small part of a company. If you buy a share, you own a tiny part of the company. If the company does well, your share becomes more valuable. If the company does badly, your share can go down, and you might lose money.
People use the stock market to grow their money. Companies use it to get money to make new products, hire workers, or open new offices.
You can buy and sell shares on stock exchanges like the Bombay Stock Exchange (BSE) or the New York Stock Exchange (NSE). Share prices change every day because of news, world events, and how confident investors feel.
Why did the stock markets crash?
The markets crashed after President Trump said there will be high import tariffs. Import tariffs are extra money a country charges on goods that come from other countries. These new tariffs are for goods from China, India, Japan, and countries in Europe.
Big investors became scared and started selling their shares. This made stock prices go down everywhere.
In the US, about $6.6 trillion was lost in just two days. In Asia, Japan’s Nikkei 225 dropped almost 9%, Hong Kong’s Hang Seng Index went down over 8%, and India’s Sensex also fell a lot.
How are countries reacting?
The crash has made many countries worried. Experts are comparing this to past crashes, like the 2008 Financial Crisis and the 1987 Black Monday.
President Trump says the tariffs are to help US companies. But China wants to fight back. Other countries like India, Japan, and European countries want to talk and find a solution.
Why is this important for us?
A stock market crash can affect everyone. People may lose jobs or get lower salaries. Savings can lose value. Prices of things we use every day can go up. Governments might have less money for schools and hospitals. A weak economy means fewer jobs for people.
Learning about the stock market helps us understand how world events can affect our lives. It also teaches us to be informed and to think about the future.
