The US stock market fell sharply in the morning, with data showing that the risk of stagflation in the United States is not to be underestimated.

US stocks fell significantly in early trading, with data showing that the US growth momentum weakened in early 2025, and there are signs of stubborn inflation, causing concerns in the market that President Trump's trade conflicts could further exacerbate economic damage. At 9:30 New York time, the S&P 500 index fell 1.4%, the Nasdaq 100 index dropped 1.9%, and the Dow fell 0.7%. The US stock market paused its six-day rally. Caterpillar Inc., as an economic barometer, predicts that if tariffs continue and the US falls into recession, sales will slightly decrease this year. Microsoft and Meta Platforms Inc. will announce their earnings after the market closes. The yield on 10-year US Treasury bonds remained steady at 4.17%. The US economy experienced its first contraction since 2022 at the beginning of this year, mainly due to a surge in imports before the implementation of tariffs and a slowdown in consumer spending.