Stock markets across the globe are in retreat as growing fears of a U.S. economic downturn, fueled by Donald Trump’s aggressive trade policies and looming federal job cuts, send shockwaves through investors.
Asian markets tumbled on Tuesday following a steep sell-off on Wall Street, where the Nasdaq plunged 4% amid concerns that the trade war could trigger inflation and force the Federal Reserve to hike interest rates again.
Trump’s weekend remarks about the economy entering “a period of transition” and his refusal to rule out a recession have only added to market jitters. His administration’s plan to impose a 25% tariff on steel and aluminum imports this week has further deepened uncertainty in financial markets.
In response, Tokyo’s Nikkei 225 index dipped 0.6%, while Hong Kong’s Hang Seng remained flat and Shanghai rebounded slightly after an early drop. Other markets, including Sydney, Singapore, Seoul, Mumbai, and Manila, also suffered losses.
The turmoil extended to cryptocurrencies, with Bitcoin slipping below $80,000 for the first time since November, largely due to disappointment over Trump’s executive order establishing a “Strategic Bitcoin Reserve” without plans for public purchases.
Meanwhile, oil prices rebounded slightly after a sharp decline on Monday, but concerns over slowing demand continue to weigh on the market.
Analysts warn that Trump’s tariff policies and ongoing economic uncertainty could further rattle investors, prolonging market volatility in the months ahead.
