The US equity market experienced a sharp sell-off this week amid concerns that President Donald Trump’s tariffs and the resulting trade wars could trigger a recession. Major US stock indices recorded significant losses on March 10, 2025. Both the S&P 500 and the Nasdaq Composite Index have fallen above 10 per cent from their recent highs, which means they have entered correction zone. Indian investors have significant exposure to the US market via mutual funds. Twenty-three funds in this category have total assets under management (AUM) of ₹45,685 crore.
Drivers of volatility
The recent volatility stems from uncertainty over the

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