A sharp downturn in the US stock market, fueled by tariff turmoil during President Donald Trump’s first months back in office, has potentially exposed key investors from the Middle East to steep losses and raises bigger questions about their long-term investments in America.  

With fears that an escalating global trade war could hurt the US economy, Wall Street has seen a swift reversal since surging to record highs following Trump’s election victory. Since Feb. 20, the S&P 500 has fallen roughly 8%, the Dow Jones Industrial Average 6% and the tech-focused Nasdaq 11%.

While American markets have faced significant pressure, major Middle Eastern exchanges have fared somewhat better. Saudi Arabia’s benchmark TASI index has dipped roughly 5% since Feb. 20, Dubai’s main index slid about 4.5%, while Abu Dhabi and Qatar each declined around 2%. Some regional markets, however, have remained resilient, with Turkey’s BIST100 gaining 10% and Egypt’s EGX30 rising 1% over the same period.

This turbulence has virtually erased gains made since Trump’s reelection last November, when markets boomed and Middle East players — like on Wall Street — had sounded bullish on Trump's agenda. Saudi Crown Prince Mohammed bin Salman was among those betting big on stronger US ties, pledging in January to channel $600 billion into US trade and investment.