Wall Street Plummets: Trump Tariffs Trigger Historic Sell-Off, Recession Fears Surge
Staff Editor Wall Street Plunges as Tariffs Spark Historic Sell-Off
Wall Street is reeling from a historic stock sell-off, with major indexes suffering their worst week since 2020. The panic gripping the financial markets is largely attributed to President Trump’s recent tariff announcements, which have sent shockwaves through the global economy.
Market experts are sounding the alarm on the tariff-induced crash, with many warning of a potential recession looming on the horizon. John Hussman of Hussman Investment Trust highlighted the increasing recession risks, noting that his Hussman Recession Warning Composite signaled a positive on April 1. JPMorgan has also raised its recession risk estimate to 60%, citing disruptive US policies as a major global economic risk.
The Federal Reserve may be forced to act swiftly in response to the market turmoil. Jason Pride of Glenmede anticipates four to five rate cuts in 2025, while Hassan Fawaz of GivTrade suggests prompt rate cuts to avoid a recession. However, Fed Chair Jerome Powell has indicated a wait-and-see approach due to ongoing inflation concerns.
The stock market outlook appears grim, with Emily Bowersock Hill of Bowersock Capital Partners declaring the bull market dead due to recent policy decisions. She has revised her year-end target for the S&P 500 downwards. Wedbush Securities warns of particular challenges for the artificial intelligence sector, as tariffs could disrupt tech trade and the AI Revolution.
As global markets continue to react to the escalating trade tensions, investors and economists alike are bracing for further volatility in the days and weeks to come.
