Tue Mar 11 01:58:18 UTC 2025: ## Global Markets Plunge After Trump’s Recession Remarks

**NEW YORK/TOKYO** – Global stock markets experienced sharp declines Tuesday following President Donald Trump’s refusal to rule out a recession triggered by his tariff policies. The comments, coupled with his description of the US economy as being in a “transitional” period, sent shockwaves through investors already concerned about fluctuating trade policies with Mexico, Canada, and China.

The sell-off was particularly brutal in the US, with the tech-heavy Nasdaq experiencing its worst day since 2022, plummeting 4%. The S&P 500 fell 2.7%, marking an over 8% drop from its February high, and the Dow Jones Industrial Average lost 2%. This follows the Nasdaq already entering a correction last week. The MSCI’s global stock index suffered its largest one-day drop, falling over 2% to its lowest point since January 13.

Individual stocks bore the brunt of the losses. Tesla shares plunged 15.4%, while Nvidia dropped over 5%. Other major tech companies like Meta, Amazon, and Alphabet also saw significant declines.

The impact rippled across the globe. Asian markets opened sharply lower Tuesday, with Japan’s Nikkei 225 down 2.5%, South Korea’s Kospi falling 2.3%, and Australia’s S&P/ASX 200 shedding 1.8%. Indian markets were also expected to open significantly lower. Europe’s STOXX 600 index closed down 1.29% earlier in the day.

The flight to safety was evident in the bond market, with US government bond yields falling as investors sought security. The yield on the 2-year Treasury note saw its largest daily drop since September. The dollar weakened against the Japanese yen, while the euro and sterling also experienced declines.

While President Trump has remained silent on the economic fallout since his initial remarks, administration officials have attempted to reassure investors. However, the market’s reaction suggests that concerns about the potential for a significant economic slowdown remain high.

Read More