US Stock Market Loses $1.75 Trillion Following Trump’s Recession Concerns
The US stock market experienced a massive loss of over $1.7 trillion in value after President Donald Trump suggested that a recession could be possible this year. His comments, made during a Fox News interview on Sunday, unsettled investors and triggered widespread declines. The S&P 500 dropped 2.7%, bringing it nearly 9% below its February peak, while the Nasdaq 100 saw its biggest one-day drop since September 2022, plummeting 3.81%.
Individual companies, particularly Tesla, took significant hits, with the electric vehicle manufacturer’s stock plunging 15.43%. Asian markets also felt the effects, as Japan’s Nikkei 225 and Taiwan’s TAIEX dropped over 2.5%. Investors are increasingly concerned about Trump’s indecisive tariff policies, especially after his unpredictable moves with tariffs on Mexico, Canada, and China. These actions have contributed to fears that the economy could slow or even enter a recession.
Analysts and market experts are voicing their concerns about the uncertainty caused by Trump’s tariffs and mixed messages. Steve Okun, CEO of APAC Advisors, pointed out that Trump’s inconsistent approach to trade and tariffs has diminished his credibility, further unsettling the market. As a result, major financial institutions like Goldman Sachs and JPMorgan Chase have raised the likelihood of a recession within the next year, citing the risk from extreme US policies.
Political figures are also reacting strongly, with Democratic Senator Elizabeth Warren blaming Trump’s policies for the stock market’s volatility. Even Republican Senator Rand Paul expressed concerns, highlighting how the market’s dramatic decline reflects broader economic sentiment. Meanwhile, Trump’s economic advisor, Kevin Hassett, downplayed the situation, suggesting that the economy would rebound in the coming quarters. However, the stock market’s dramatic reaction underscores the growing anxiety surrounding the administration’s economic decisions.
SOURCE: CITI NEWSROOM