A decline in the value of the United States’ stock market by more than $1.7 trillion has occurred following US President Donald Trump’s refusal to rule out the possibility of the economy entering a recession this year. This resulted in the benchmark S&P 500 dropping by 2.7 percent, pulling the index down by nearly 9 percent from its all-time high reached on February 19. The tech-heavy Nasdaq 100 also saw a significant decline of 3.81 percent, marking its steepest single-day loss since September 2022. These losses have pushed both the S&P 500 and Nasdaq 100 to their lowest levels since September. Tesla, led by Elon Musk, experienced some of the most significant individual losses, plummeting by 15.43 percent. The market turmoil, exacerbated by Trump’s inconsistent tariff announcements, has rattled investors and raised fears of a potential economic slowdown or recession. In an interview with Fox News, Trump acknowledged the possibility of a downturn, attributing it to a period of transition as the country rebounds economically. Experts, such as Steve Okun, founder and CEO of APAC Advisors, point out the uncertainty brought about by Trump’s lack of credibility in handling tariffs, which has contributed to the market’s reaction. The President’s imposition of tariffs on imports from Mexico, Canada, and China has further clouded the economic outlook. Goldman Sachs economists have increased the likelihood of a recession within the next 12 months, while JPMorgan Chase has raised the probability to 40 percent in response to Trump’s policies. Peter Tuchman, a New York Stock Exchange trader, described Monday’s trading session as a “bloodbath” due to fears of a recession and the mixed messaging from the White House. Democratic Senator Elizabeth Warren has criticized Trump’s policies for jeopardizing the economy, while Kentucky Senator Rand Paul has expressed concern about the stock market’s response to tariffs. However, Kevin Hassett, the head of Trump’s National Economic Council, downplayed concerns, suggesting that the first quarter would still show positive growth and the second quarter would see a stronger economy as the tax cuts take effect.

Source: https://www.aljazeera.com/economy/2025/3/11/bloodbath-us-stock-market-sheds-1-75tn-after-trumps-recession-remarks?traffic_source=rss