Stock market losses cause strain on Oklahoma businesses

Financial markets experienced a tumultuous week, closing with significant losses as stocks plummeted for the second consecutive day. The steep decline was fueled by concerns over the potential economic fallout from new U.S. tariffs and fears of a global trade war. President Donald Trump's announcement of hefty tariffs on Wednesday left investors stunned, prompting many economists to revise their forecasts for U.S. economic growth downward.

Experts have called this the worst two-day drop in the stock market in five years. The Dow Jones Industrial Average fell more than 2,000 points, marking a sharp decline that sent shockwaves through financial markets. Federal Reserve Chairman Jerome Powell warned that the tariffs would likely lead to rising inflation, saying, "Prices on goods will go up, and higher tariffs will work their way through our economy in the coming quarters."

Despite the troubling outlook, President Trump attempted to calm concerns on social media, reassuring the public that big businesses are not worried about the tariffs, as they understand that they are likely here to stay. He promised that the tariffs would ultimately "supercharge" the economy.

However, local businesses, particularly those in Oklahoma's oil and energy sectors, are already feeling the strain of the market downturn. Companies such as ONEOK, Phillips 66, and Williams have all seen their stock prices fall sharply in recent days. Financial experts attribute the drop to a mix of fear and speculation surrounding the tariffs, suggesting that reduced economic activity from higher tariffs could harm the state’s top industries, particularly oil, due to lower demand.

While some experts are urging patience, noting that historically the market has always rebounded after such declines, others caution that the effects of the tariffs should not be underestimated. Experts say everyone should pay attention to what's happening because the successes and downfalls of the market can have big trickle-down effects.

As the situation develops, the impact on both national and local economies remains to be seen, with many wondering how long the market will take to stabilize.