Photo by Annie Spratt on Unsplash

Introduction

(Bloomberg) — With frothy corners of the US stock market under duress as investors grow concerned about the economy and the threat from inflation, Wall Street bulls are finding little solace in the one area that’s been unshakable for two years: megacap tech. The seven giants that powered a 54% surge in US stocks over two years tumbled into a collective correction Tuesday, highlighting a fraught moment for American equities that have churned near records for most of 2025.

Conservative Perspective

Conservatives argue that the stock market’s current instability is a result of over-regulation and the threat of increased tariffs under President Donald Trump’s administration. Focusing on deregulation and fiscal spending, conservatisms see potential for the market to stabilize if these factors are addressed. Tariffs, particularly a 25% levy on two major trading partners, are perceived as a burden that stokes inflation and dampens consumer confidence. From this standpoint, loosening regulations and reducing tariffs could reinvigorate investor confidence.

Liberal Perspective

Liberals view the market’s downturn as a consequence of inequitable economic policies and the unwarranted trust in megacap tech firms that have shown vulnerability. They argue that President Trump’s strong-handed trade policies lead to volatility and unpredictability in the market. The fear of mass deportations and heightened tariffs exacerbate uncertainties within the market, suggesting that a re-evaluation of trade agreements and focusing on equitable economic policy could yield long-term market stability. Emphasizing spending on sustainable tech solutions, rather than inflated AI ventures, is suggested to drive growth.

Conclusion

The recent turbulence in the US stock market reflects a complex intersection of political, economic, and global trade dynamics. Conservative and liberal perspectives vary markedly on the path forward, yet both agree that addressing these intertwined issues is imperative for the revitalization of the market. As megacap tech faces its first substantial correction in years, a balanced approach may be required to guide towards a more stable economic future.