New York, USA:
Stock markets around the world witnessed sudden losses after the sale in the United States, refusing to rule out a proposal that was caused by US President Donald Trump on Monday that his tariffs could cause a recession in the world’s biggest economy. The US bond yields have fallen as investors’ concerns about a potential economic slowdown that has been exacerbated by Trump’s statement that the US economy is in a “transition” amid his fluctuating trade policies in Mexico, Canada and China that could reduce consumer demand and corporate investment.
In New York, Tech Heavy Nasdaq saw its worst day since 2022. The benchmark S&P 500, which tracks America’s biggest companies, also fell by more than 8% from its height in February.
The US president has not commented directly on the economy since his troubling remarks, but his top officials and advisors have tried to calm the fears of investors.
Red Market
On Monday, the S&P 500 closed 2.7% on trading day. This is the lowest closure level since September, and the largest daily decline since December. Meanwhile, the Dow Jones industrial average fell by 2%, the lowest since November 4th, the day before the election as President Trump. Nasdaq composites plummeted by 4% to a low of nearly 4%.
Nasdaq confirmed the correction last week and fell more than 10% from his December history high. MSCI’s Global Stock Index also fell by more than 2%, marking its lowest level since January 13th.
Trump aid Elon Musk’s Tesla stock saw a decline of around 15.4%, while the artificial intelligence (AI) chip giant Nvidia fell by more than 5%. Other major tech stocks, including Meta, Amazon and Alphabet, also saw a sharp charge.
In early trade on Tuesday, Japan’s Nikkei 225 fell 2.5%, South Korea’s Cospi was 2.3% lower, and Australia’s S&P/ASX 200 fell 1.8%. Indian shares are also scheduled to open in the lower Tuesday, tracking widespread sales across the Asian market after Wall Street fell overnight.
Gift Nifty Futures was trading at 22,430.5 as of 7:53am. This indicates that the Blue-chip Nifty 50 is likely to open under 22,460.3, which ends Monday. The Nifty 50 is about 14.5% below its all-time hit in September 2024. This is hurt by revenue growth, uncertainty in US tariffs and delaying merciless foreign sales.
Previously, the Pan-European Stoxx 600 index had a 1.29% decline.
In bonds, yields with US government bonds fell after Trump’s interview fell into investor trust. The two-year note yield, which usually moves in stages with forecasts for Federal Reserve interest rates, fell from 4.002% on Friday to 10.4 basis points due to the biggest daily decline since September.
Benchmark US 10-year note yield fell 9.3 basis points to 4.225%, while 30-year bond yield fell 6.9 basis points to 4.548%.
In currency, investors looked for safety. The dollar weakened to 147.29 against the Japanese yen, down from 0.5%. However, the euro fell 0.06% to $1.0826, while Sterling reduced 0.45% to $1.2862.
Oil prices also sunk as tariff uncertainty put investors in the advantage as production from OPEC+ producers rose, but potential sanctions on Iran’s oil exports limit losses. American crude settled at $66.03 a barrel at 1.51% or $1.01, while Brent fell by $69.28 per barrel, or $1.08 or 1.53%.
Gold prices also plummeted later this week as support for profiting from safe haven demand, spurring geopolitical uncertainty, focusing on US inflation data. Spot Gold fell 0.86% to $2,885.63 per ounce. US gold futures fell 0.76% to $2,882.70 per ounce. Copper fell 1.25% to $9,493.00 per tonne.
In cryptocurrency, Bitcoin fell 4.88% to $79,028.58 after touching on its lowest level since November.
Trump’s remarks
Speaking to Fox News on Sunday, President Trump appears to have acknowledged concerns about the recession. When asked about it, he said, “I hate predicting such things.”
“What we’re doing is so big, so there’s a period of transition. We’re bringing wealth to America. That’s a big deal,” he added.
White House officials said after the Wall Street deal closed Monday, “we see a strong difference between the animal spirit of the stock market and what we actually see and what is being developed by companies and business leaders.”
“The latter is clearly more meaningful than the former, which is prepared for the economy in the medium to long term,” the official added.
But Trump didn’t show up on camera Monday as the US stock market plunged in after his comments.
Investors want safety
Investors have begun to seek security following President Trump’s remarks, and market strategists have pointed out comments as an important reason for Monday’s cautious mood.
“It appears that the Trump administration is a little more embracing the idea that markets are okay with falling, and they seem to be OK with a recession to ensure that the broader goals are accurate,” Ross Mayfield told news agency Reuters.
“I think it’s a big awakening call for Wall Street. There was a sense that President Trump measured the success of stock market performance, and that he could even “put on it,” so to speak.
“If White House residents themselves are not that optimistic about short-term growth expectations, why should the market be optimistic about it?” said Will Compernolle, macro strategist at FHN Financial.
