As global markets face growing economic uncertainty, 2025 has yet to deliver a clear path forward. Fears of inflation, recession, trade wars, and a stock market crash weighed heavily on everyday investors, prompting many to sell, yet the rich are taking advantage of the market’s volatility, scooping up stocks at discounted prices.
Stock market struggles amid AI and trade tensions
In early February, Singapore retail traders ditched local stocks for the “flying gains” of US stocks, noting that returns in the city-state were “not as good”. However, when Chinese artificial intelligence (AI) startup DeepSeek gained attention for its open-source AI chatbot R1, it rattled the US technology sector as the globally most watched tech stock Nvidia plummeted 17% , resulting in a US$589 billion (S$797 billion) loss— the most significant one-day loss for a company on Wall Street.
Tech giant Microsoft’s shares also dropped 5% after investors expressed concern over the hefty investment spending amid slow AI revenue growth of the company, as competition with China’s cheaper AI models like Deepseek grows.
Still, Microsoft accelerated its data centre expansion in Malaysia after acquiring a 91,249-square-metre plot of land near the Singapore border.
Meta, another tech giant, shares rose by up to 5% after-hours trading on Jan 30 after it reported that its net income soared by 59 per cent, reaching US$62.36 billion (S$84.20 billion) for 2024.
As the rise of AI continues to impact business competition, Trump administration officials are considering tightening curbs on Nvidia chips sold to China, according to sources familiar with the matter.
US tariffs, taxes on imported goods, are part of the US move to give access to the American market. According to the White House’s fact sheets, the US has the lowest average tariff rates globally, and these tariffs aim to put Americans’ safety and national security first.
Tariffs on Mexico and Canada remain on pause, while tariffs imposed on Chinese goods by US President Donald Trump have led China to file a complaint with the World Trade Organization (WTO).
Stocks slide as tariff concerns and recession fears grow
On March 11, Asian markets fell over concerns about US tariffs and a possible recession—a drop that did not spare the city-state’s Straits Times Index.
In the US, the Nasdaq plunged 4% to 17,468.32, its biggest one-day drop since 2022. The S&P 500 fell 2.7% to 5,614.56, while the Dow slipped 2.1% to 41,911.71. Both indices have been on a losing streak, with the S&P down over 8% from its February high and the Nasdaq more than 10% below its December peak.
While the White House pushed back on recession fears, with Kevin Hassett, director of the National Economic Council, saying there are many reasons to stay optimistic despite inflation and a likely GDP drop in the first quarter, the March CNBC Fed Survey showed rising concern. The survey’s 32 respondents, including fund managers, strategists, and analysts, raised the chance of a recession to 36%, up from 23% in January.
With US tariff policies igniting a global trade war and recession fears, the market will “remain choppy” as Rhys Williams, chief investment officer at Wayve Capital said, up until a tariff exemption decision for Mexican and Canadian imports is made on April 2, as reported by CNBC.
Despite a sell-off triggered by recession fears, Investopedia reported on March 18 that Bank of America’s (BofA) data showed dip buyers, including institutional investors and corporate clients, kept buying US equities for the seventh straight week, focusing on individual stocks and ETFs as the S&P 500 slipped into correction territory.
However, concerns over stagflation—defined by the World Economic Forum as “a toxic blend of deteriorating growth and rising inflation”—loomed globally, dragging US stocks down again on Tuesday (March 19) after two days of gains.
The Dow Jones Industrial Average fell 0.62%, or 260.32 points, to 41,581.31, while the S&P 500 dropped 1.07% to 5,614.66, edging closer to correction territory, when a major stock index declines by more than 10% but less than 20%. The Nasdaq Composite Index also slid 1.71% to 17,504.12.
Tesla dropped over 5% after RBC Capital Markets cut its price target on the EV giant, citing rising competition. Last week, Tesla’s shares plunged 15%, its biggest single-day drop since 2020, amid EV demand concerns.
Meanwhile, Europe’s Stoxx 600 gained 0.61%, bucking the trend.
Job cuts leave the bottom of the chain most vulnerable
However, as concerns over market volatility continue, it seems the most affected remain the same—those at the bottom of the chain.
Al Jazeera reported on March 11 that layoffs have surged, with many job cuts hitting lower-level employees, reflecting ongoing instability in the job market.
Some companies that have announced job cuts this year are BlackRock, Citigroup, Google, Meta, and Starbucks. Closer to home, PropertyGuru has already cut jobs, while outgoing DBS CEO Piyush Gupta said the bank may cut 4,000 jobs. Malaysia’s Petronas is also expected to cut jobs in the second half of 2025 due to global volatility and lower oil prices.
Chocolate Finance suspended withdrawals
In the city-state, Singapore Chocolate Finance cardholders were also recently rattled after the platform suspended instant withdrawals on Monday (March 11), citing “high demand.”
In response, panicked cardholders shared tips on r/singapore to cash out instantly via GrabPay—creating a downward spiral, as one commenter noted, with more people withdrawing their funds in panic.
On Tuesday (March 18), however, Chocolate Finance updated that most withdrawal requests had been completed and funds transferred to users’ accounts. Meanwhile, other remaining transactions are expected to be completed within the next business days.
Power struggle at CDL shakes investor confidence
Beyond trade wars, economic concerns, and inflation, a power struggle at City Developments Limited (CDL), Singapore’s largest real estate company by market capitalisation, has also unfolded barely three months into the year.
In late February, real estate billionaire Kwek Leng Beng, CDL’s executive chairman, filed court papers against his son, group chief executive officer Sherman Kwek, and other board members over an alleged “attempted coup.” Claiming that the situation put the company in a “precarious position,” the older Mr Kwek also proposed firing his son as group CEO.
In response, the younger Mr Kwek pointed to his father’s adviser, Dr Catherine Wu, director at Millennium & Copthorne Hotels (M&C), CDL’s hotel arm, as the source of the dispute.
On March 4, the older Mr Kwek announced the “irrevocable resignation” of Dr Wu, stating that his son could no longer “justify his board coup.”
Amid the boardroom brawl, CDL shares fell. As the company’s performance took a hit, the Securities Investors Association (Singapore) (SIAS) called on CDL to clarify the situation.
However, on March 13, the older Mr Kwek announced he would drop his lawsuit against his son, and CDL shares rose by 4 per cent.
On Monday (March 17), as the company moved past its boardroom dispute, the younger Mr Kwek said CDL would now provide shareholders with a proper account, stating that it is the company’s “responsibility.”
As 2025 continues to unfold, will the rich continue to benefit from the current market instability, or will there be room for the average investor to get ahead? How much more turbulence lies ahead in the coming months, and how will it impact everyday workers and those just trying to make ends meet? /TISG
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