Wall Street is grappling with its most significant sell-off in months as market strategists struggle to navigate the Trump administration's fluctuating tariff policies.

The S&P 500 recently plummeted to a low of 5,528 points, marking a 10% decline from a record-high reached in February. The Dow Jones Industrial Average and NASDAQ have also experienced notable losses, leading to trillions of dollars in lost market value.

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"It's kind of like a game of chicken basically that Trump and America is playing with these other countries, right?" questioned Aaron Cirksena, founder of MDRN Capital. "And it's kind of like who's going to blink first, who's going to make a concession first?"

Cirksena explained that without any financial concessions from international trading partners, investors will likely continue to face uncertainty as they assess the potential risks to various industries.

The unresolved tariff situation has dampened consumer sentiment, leaving company executives concerned about its potential impact on future earnings. Retailers and airlines have been particularly hard hit; Dick's Sporting Goods, Kohls, Delta Airlines, and American Airlines have all reported disappointing results or adjusted forecasts for 2025.

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"The biggest advantage that we have as America, with our economy being the size it is and being as impactful as it is for other countries' economies, is that we probably have more of an ability to weather these storms than some other countries have," Cirksena said. "I'm sure that's playing into [Trump's] mind a little bit of thinking, look, some of these other countries, if their constituents start to feel a little bit of the pain, they may have to be the ones to blink before we do."

In times like these, Cirksena emphasizes the importance of maintaining a diversified investment portfolio. All 11 major S&P sectors have declined over the past week, although technology and consumer non-essential goods and services — the two worst-performing groups this year — saw the least severe drops.

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