Close Menu
  • Home
  • News
  • Business
  • Technology
  • Lifestyle
  • Travel
What's Hot

ZAPI Group Acquires Stercom to Boost Charging Tech

August 7, 2025

Mastercard highlights AI’s role in Africa’s growth

August 7, 2025

teamLab Kyoto: A Must-See Art Trip This October

August 7, 2025
  • About us
  • Editorial policy
  • Contact
X (Twitter)
Abu Dhabi Week
  • Home
  • News
  • Business
  • Technology
  • Lifestyle
  • Travel
Subscribe
Abu Dhabi Week
Home » Key Market Terms to Know Amid Trump’s Tariff Chaos
Business

Key Market Terms to Know Amid Trump’s Tariff Chaos

Sam AllcockBy Sam AllcockAugust 7, 2025No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
Share
Facebook Twitter LinkedIn Pinterest Email

With the global economy reeling from a new wave of U.S. tariffs imposed by President Donald Trump, markets have responded with sharp downturns and volatility, leaving many investors uncertain and anxious. Whether you’re a seasoned trader or a casual stockholder, understanding the language used to describe market shifts is more important than ever.

Here is a guide to some of the key terms being used in financial media as markets react to escalating trade tensions.

Bear Market
A bear market is generally defined as a drop of 20% or more in major stock indices from recent highs. While it’s a headline-grabbing term, experts often break it down further, distinguishing between cyclical and secular bear markets. The latter, as described by Barry Ritholtz of Ritholtz Wealth Management, can last years and signal deeper systemic issues.

Black Swan
Coined by statistician Nassim Nicholas Taleb in 2007, a black swan event refers to rare and unpredictable incidents that have a major impact on financial systems—such as the 2008 crash or the COVID-19 pandemic. With Trump’s sudden tariffs and global trade war escalation, analysts warn we may be entering a new black swan scenario.

Buying the Dip
This is a popular investor strategy where individuals purchase stocks after prices drop significantly, expecting them to recover and rise in value over time. While tempting during volatile periods, this approach carries risks, particularly if downturns are prolonged.

Circuit Breakers
In extreme market conditions, exchanges can activate circuit breakers—temporary halts in trading to prevent panic selling. These mechanisms kick in after pre-set percentage declines in major indices and were most recently seen during the COVID-19 sell-off in 2020.

Contagion
Contagion refers to financial instability spreading from one country or sector to others. For example, U.S. tariffs on Brazil and trade disputes with China may have ripple effects on European markets and developing economies alike.

Correction
Unlike a bear market, a correction is a shorter-term dip—typically around 10%—in market value, often following extended gains. Corrections can be healthy for markets but are also early warning signs of deeper problems.

Crash
A market crash is a sudden and dramatic drop in stock prices, often triggered by panic selling. Famous examples include the 1987 Black Monday and the 2008 global financial meltdown. The current tariff fallout is raising fears of another potential crash.

Safe Haven Assets
During uncertain times, investors often turn to safe haven assets—such as gold, U.S. Treasury bonds, or the Swiss franc—which tend to hold or increase value during market stress.

Margin Call
A margin call occurs when investors must provide additional funds or securities to cover losses on leveraged positions. In a falling market, this can trigger forced sales, further amplifying declines.

Short Selling
This strategy involves borrowing shares, selling them at current prices, and buying them back later at a lower price. Traders profit if the stock declines. While potentially lucrative, short selling is high risk, especially during volatile swings.

VIX (Volatility Index)
Often called the “Fear Index,” the VIX measures expected market volatility using S&P 500 options. A rising VIX reflects heightened investor anxiety—something we’re seeing as global markets react sharply to Trump’s latest trade moves.

Understanding these terms won’t shield investors from losses, but they offer clarity amid the noise. As trade tensions rise, staying informed may be the most valuable asset of all.

Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
Previous ArticleGermany to Launch €100bn Strategic Investment Fund
Next Article Eminem Surprises Fans at ‘Stans’ Documentary Premiere
Sam Allcock
  • Website

Sam Allcock is a seasoned media professional and content strategist with a passion for storytelling across digital platforms. As a contributor to Abu Dhabi Week, Sam brings a sharp editorial eye and a deep appreciation for the culture, innovation, and lifestyle that define the UAE capital. With over a decade of experience in journalism and public relations, he covers everything from local events and business trends to travel, dining, and community highlights. When he's not writing, Sam is exploring the hidden gems of Abu Dhabi, always on the lookout for the next story worth sharing.

Related Posts

Mastercard highlights AI’s role in Africa’s growth

August 7, 2025

Germany to Launch €100bn Strategic Investment Fund

August 7, 2025

United Arab Bank Raises AED 1.03B in Oversubscribed Rights Issue

August 6, 2025

NBB Unveils Tailored Investment Products for HNWIs

August 6, 2025
Leave A Reply Cancel Reply

Don't Miss
Technology

ZAPI Group Acquires Stercom to Boost Charging Tech

By Sam AllcockAugust 7, 20250

ZAPI GROUP, a global leader in electrification and industrial automation, has announced the acquisition of…

Mastercard highlights AI’s role in Africa’s growth

August 7, 2025

teamLab Kyoto: A Must-See Art Trip This October

August 7, 2025

Riot Faces Backlash Over AI Wild Rift Trailer

August 7, 2025
About Us
About Us

Abu Dhabi Week delivers the latest business news, insights, and updates from the heart of the UAE.

Connect with us: advertising@abudhabiweek.ae | editor@abudhabiweek.ae.

Our Picks
New Comments
    X (Twitter)
    © 2025 Abu Dhabi Week

    Type above and press Enter to search. Press Esc to cancel.