The 3.1% drop in the STOXX 600 index last Friday has become a clear indication that the market is entering a corrective phase. After reaching a record high on March 3, the index has fallen by over 10% from its peak, signaling drastic changes in market dynamics. This decline follows a 2.6% drop on the previous day, which came on the heels of US President Donald Trump's announcement of extensive tariff measures. These new tariffs sent shockwaves through global stock markets, adding further pressure on the STOXX 600 and emphasizing the vulnerability of markets to external economic and political factors.

As Wall Street wrapped up a turbulent first quarter of 2023, investors found themselves navigating a sea of political uncertainties that cast a shadow over future market performance. The S&P 500 index closed the quarter with a 4.6% decline, marking its worst quarterly performance since the opening quarter of 2022. This slump underscores the impact of political tension on market volatility and investor sentiment.