NEW DELHI: Global markets saw heavy losses after Donald Trump’s recent comments. The US President did not rule out a recession due to his tariff policies. This triggered panic among investors, causing sharp declines in stock prices worldwide.
The Nasdaq Composite fell 4%, marking its worst day since 2022. The S&P 500 dropped 2.7%, wiping out $4 trillion in market value. The index is now down nearly 9% from its recent peak in February.
The Dow Jones Industrial Average dropped 2%, hitting its lowest close since November 4. The Nasdaq confirmed a correction after tumbling over 10% from its all-time high in December. The MSCI global index also fell 2%, hitting its lowest level since January 13.
Tech giant Tesla saw its shares fall by 15.4%. Nvidia, a major AI chipmaker, also declined by over 5%. Other tech stocks like Meta, Amazon, and Alphabet faced steep losses too.
Asian markets mirrored the losses. Japan’s Nikkei 225 dropped 2.5%, South Korea’s Kospi fell 2.3%, and Australia’s ASX 200 slipped 1.8%. Indian markets also opened lower. The Nifty 50 dropped 0.51% while the Sensex fell 0.5%.
In Europe, the STOXX 600 index fell 1.29% during Monday’s trading session.
Bond yields dropped sharply as investors rushed to safe-haven assets. The 2-year US Treasury yield fell 10.4 basis points to 3.898%. The benchmark 10-year note yield fell 9.3 basis points to 4.225%.
In currency markets, the US dollar weakened against the Japanese yen, dropping 0.5% to 147.29. The euro fell 0.06% to $1.0826, and the British pound slipped 0.45% to $1.2862.
Oil prices also declined due to tariff uncertainty. US crude settled 1.51% lower at $66.03 a barrel. Brent crude dropped 1.53% to $69.28 per barrel.
Gold prices fell 0.86% to $2,885.63 an ounce, while US gold futures dropped 0.76% to $2,882.70.
Cryptocurrency markets also faced losses. Bitcoin plunged 4.88% to $79,028.58, marking its lowest since November.
Trump’s remarks on Fox News worsened investor fears. He described the economy as being in a “period of transition.” Trump’s comments raised concerns about slower economic growth and potential recession.
Analysts believe the uncertainty over tariffs and economic policies is driving the selloff. Market experts say Trump’s mixed signals on tariffs have increased business and investor worries.
Tech stocks like Tesla, Nvidia, and Apple faced sharp losses. Tesla shares fell over 15% following Elon Musk’s recent actions and political remarks in Europe.
Bond markets reacted strongly, with yields dropping as investors sought safer options.
