The Analysis Of The 2025 Stock Market Crisis And Its Impact On Global Financial Stability

Abstract

The 2025 stock market crisis was a major event in global financial dynamics, highlighting the market’s high sensitivity to economic, political, and information technology factors. This study aims to analyze the causes of the 2025 stock market crisis and its impact on global economic stability. At the beginning of the year, market conditions appeared relatively stable, marked by rising stock prices and high profits among major technology companies. However, rising inflation prompted the Federal Reserve to raise interest rates, leading to increased borrowing costs for the housing, consumer, and business investment sectors. These conditions caused a slowdown in consumption, a decline in credit, and weakened economic growth. Market conditions were further pressured by rising political uncertainty, particularly following the emergence of proposals for new policies regarding the regulation of major technology companies and the imposition of additional trade tariffs. Negative investor sentiment was exacerbated by the spread of unverified information via social media, triggering a mass sell-off. Additionally, algorithm-based automated trading systems accelerated the decline in stock prices through a chain reaction of selling. The analysis shows that this crisis not only impacts the U.S. domestic market but also spreads to various countries such as Japan, Germany, and China, resulting in losses to public savings and global pension funds. Compared to the crises of 2008 and 2020, the 2025 crisis developed more rapidly, underscoring that digital media and modern technology play a significant role in accelerating the transmission of global financial panic.