World
India
The US stock market has suffered a staggering $1.7 trillion loss in value following comments from President Donald Trump, who declined to rule out the possibility of an economic recession this year.
Benchmark Indicies See Steep Decline
On Monday, the benchmark S&P 500 fell by 2.7 percent, pulling the index nearly 9 percent below its record high reached on February 19. The tech-heavy Nasdaq 100 saw an even steeper decline, plunging 3.81 percent—its worst single-day loss since September 2022.
The market downturn, continuing after two weeks of steep declines, has pushed both the S&P 500 and Nasdaq 100 to their lowest levels since September.
Tesla Among Biggest Losers in US Stock Market Bloodbath
Electric vehicle giant Tesla, led by Trump’s cost-cutting advisor Elon Musk, experienced one of the sharpest individual stock declines, plummeting 15.43 percent.
The ripple effect extended to Asian markets on Tuesday morning, with Japan’s Nikkei 225 and Taiwan’s TAIEX each falling more than 2.5 percent, while Hong Kong’s Hang Seng slipped about 1.5 percent.
The sell-off follows Trump’s fluctuating tariff policies, which have fueled investor anxiety and raised concerns over a potential economic slowdown—or even a recession.
In an interview with Fox News aired on Sunday, Trump left the door open to the possibility of an economic downturn when questioned about the likelihood of a recession in 2025.
US Stock Market Analysts Remain Skeptical
“I hate to predict things like that. There is a period of transition, because what we’re doing is very big,” Trump stated. “We’re bringing wealth back to America. That’s a big thing… It takes a little time, but I think it should be great for us.”
“There’s total uncertainty in the market,” said Steve Okun, founder and CEO of APAC Advisors in Singapore, in an interview with Al Jazeera. “Trump has no credibility right now when it comes to tariffs, because of what he has done, in particular with Mexico and Canada. That’s why the markets are reacting the way they are—they don’t know what’s going to happen.”
Tariff Policy Whiplash
Last week, Trump imposed a 25 percent tariff on imports from Mexico and Canada and doubled tariffs on Chinese goods to 20 percent. However, just two days later, he announced a delay on some of the Mexican and Canadian tariffs until April 2.
Adding to the uncertainty, a separate 25 percent tariff on steel and aluminum imports is set to take effect on Wednesday.
Amid this turbulence, major financial institutions have adjusted their recession forecasts. Goldman Sachs has increased its probability of a U.S. recession within the next 12 months from 15 percent to 20 percent. Meanwhile, JPMorgan Chase has raised its odds from 30 percent to 40 percent, citing “extreme U.S. policies.”
Monday’s market chaos was described in stark terms by New York Stock Exchange trader Peter Tuchman.
“These stocks are being eaten away, and this is obviously all over fear of a recession, right?” Tuchman said in a video posted on X, formerly known as Twitter.
Also Read: Zelensky Apologized To Trump After Heated Oval Office Clash, Claims U.S. Envoy
