Stock Market Correction 2025: Guide to Navigating the Sell-Off
In Case You Missed It...
Unless you've been living under a rock or binge-watching your favourite series non-stop, you've probably noticed your portfolio looks a bit worse for wear lately. Global stock markets, including our beloved ASX, have taken a significant tumble.
The S&P 500 is now firmly in correction territory, down more than 10%, tech stocks are being hit hardest, and volatility has surged like an adrenaline junkie jumping from a plane.
It's time to sit up and pay attention because these moves scream risk and opportunity in the same breath. It gets confusing out there. We'll get into the key indicators to watch and how we'll know if this is turning around or if the pain is just beginning.
But first, let's get into exactly what's happening so we know which developments we need to watch most closely.
Why the Stock Market is Falling: Interest Rates, Inflation, and Trump's Tariffs
Markets are freaking out for a few solid reasons. Central banks, especially the Fed, are still playing tough on interest rates, signalling ‘higher for longer’ isn't just a catchy slogan.
Gone are the good old days of Draghi's 'Whatever it takes'. We're in upside-down land now.
NVDA Meltdown is a Warning Shot for Big Tech Investors
Nvidia (NASDAQ:NVDA) has had a rough couple of days in the share market, down 22% in just a couple of days. The whole AI sector is down with it. This isn’t just about one company—Nvidia’s fall matters because of its outsized role in the AI economy and its massive weighting in the NASDAQ index - about 9%.
Its chips power everything from data centres to autonomous vehicles, and when its valuation wobbles, it shakes confidence in the entire ecosystem. In addition to this, its reliance on China for growth and the rising competition from Chinese chipmakers are a recipe for sector-wide turmoil.
NVDA has boomed on the back of the rise of cryptocurrency and AI. It's been one of the most hyped and heavily overvalued stocks for several years.
And it's consistently validated those valuations with astronomical growth.
It's hard to find a better success story for the past decade. Needless to say, it attracts attention when we see such a massive fall.
So, what the hell just happened? Is this the start of the next market meltdown, or just another bump in the road for growth stocks?