Global stock markets faced a historic selloff this week, driven by mounting fears of a trade-driven recession after former U.S. President Donald Trump's aggressive tariff measures. The Nasdaq Composite confirmed its first bear market since the pandemic, plummeting 11.4% over two days—its worst performance since March 2020.
All three major U.S. indices suffered dramatic declines: The Dow Jones Industrial Average fell 9.3%, while the S&P 500 sank 10.5%, erasing $8 trillion in market value. Analysts linked the turmoil to Trump’s decision to impose tariffs reaching levels not seen in over a century, sparking retaliatory threats from trading partners.
China announced plans to levy 34% tariffs on all U.S. goods starting April 10, escalating cross-Pacific tensions. Global leaders, including Britain’s and Australia’s prime ministers, urgently debated countermeasures amid warnings of a 60% chance of worldwide recession by year-end, according to JP Morgan analysts.
Federal Reserve Chair Jerome Powell cautioned that the tariffs could stifle growth and intensify inflation, complicating monetary policy. Safe-haven buying pushed 10-year Treasury yields below 4%, compounding pressure on banking stocks as rate-cut expectations grew.
Energy stocks led sector losses, plunging 8.7% alongside sliding oil prices, while UBS Wealth Management’s Mariam Adams described the situation as "the Wild West of a trade war." Investors now await signals of de-escalation to stem further losses.
