The S&P 500 index (SNPINDEX: ^GSPC) is made up of 500 companies from 11 different sectors of the economy, so it's the most diversified of the major U.S. stock market indexes. It's currently down 12.5% from its record high, placing it firmly in correction territory, amid simmering global trade tensions that were sparked by President Trump's "Liberation Day" on April 2. The president announced a sweeping 10% tariff on all imported goods from America's trading partners, in addition to much higher "reciprocal tariffs" on goods from specific countries that have large trade surpluses with the U.S. The reciprocal tariffs have been paused for 90 days (except those on Chinese goods) pending negotiations, but investors are still concerned about a potential economic slowdown, hence the stock market sell-off.
