Stock Market Tumbles - Recession Fears

Wall Street took a hit on Monday, with the S&P 500 dropping 2.7%—its steepest decline this year—amid growing concerns that ongoing tariff battles and economic uncertainty could lead to a recession. The market has now fallen nearly 9% from its recent peak, edging close to official “correction” territory.

Investor anxiety stems from the unpredictable nature of U.S. trade policies, with President Trump hinting at further tariffs. The impact is being felt across the board, from agriculture to tech, with giants like Tesla, Apple, and Nvidia suffering significant losses. The Nasdaq has already entered a correction, falling over 4% on Monday alone.

As stocks tumble, investors are seeking safety in bonds, driving down the 10-year Treasury yield. Meanwhile, oil prices have also declined—another signal of economic unease. The Federal Reserve may respond with rate cuts, but concerns persist over inflation and the broader economic outlook.

Despite strong hiring numbers, economists are growing increasingly cautious, with Goldman Sachs now putting recession odds at 20% and JPMorgan Chase warning of a 40% chance of a global downturn due to U.S. policies. All eyes are on upcoming inflation data, as rising costs could further strain consumer confidence.

Uncertainty remains the market’s biggest challenge, and for now, investors are bracing for more volatility ahead.

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