Global stock markets continued their downward trajectory on Monday, as fears surrounding the impact of US tariffs weighed heavily on investor sentiment. With the S&P 500 futures indicating a 1% loss on the final day of the quarter, major indices suffered broad losses. The Nasdaq 100 dropped 1.4%, while notable tech companies like Nvidia, Palantir Technologies, and Tesla fell more than 3% in premarket trading. Investors flocked to safer assets, sending gold to record highs and US Treasury bonds higher.
In Europe, the Stoxx 600 index slid by 1.2%, and Asian markets also endured significant losses. Japan’s Nikkei 225 index dropped 4%, while Taiwan’s stock market fell into correction territory. The widespread decline reflects growing concerns that US tariffs could harm the global economy, exacerbating financial instability and raising recession fears.
The S&P 500’s 5.1% decline in the first quarter marks its worst performance since 2022, wiping out approximately $5 trillion in US equity value since February. Goldman Sachs’ David Kostin downgraded his S&P 500 target for the second time this month, now forecasting the index to end the year at 5,700 points, down from a previous estimate of 6,200, due to increased recession risks and ongoing tariff-related uncertainty.
As tariff-related tensions persist, speculation is growing that the Federal Reserve and the European Central Bank may soon implement more interest rate cuts. On the verge of Trump’s reciprocal tariff push on April 2, market experts warn of a potential 4% hit to US GDP and rising prices over the next few years. Meanwhile, 10-year US Treasury yields continued to decline, with some analysts predicting rates may drop below 4% as early as this week.
Source: Business Day