The stock markets in the United States fell on Monday amid fears that President Donald Trump’s policies may push the world’s largest economy to recession. After years of impressive growth, the economic exception of America was questioned.

Anxiety about economic shrinkage has pushed a market for securities, which spent $ 1.7 trillion of the world’s most monitored stock index. It decreased by 2.7 percent, withdrawing 9 percent less than the highest level ever reached on February 19.

NASDAQ-100 has recorded its worst day since 2022, as it has been valued at more than $ 1 trillion. Investors sold shares in the so-called “Seven Magnificent” -alphabet, Amazon, Apple, Microsoft, Meta, Nvidia and Tesla.

What caused stagnation?

The market selling the market comes at a time when Trump’s advertisements for backward tariffs have sparked investors and raised fears that the American economy can tend to slow down, or even stagnate.

Last week, Trump slapped a 25 percent tariff on imports from Mexico and Canada and doubled the rate of Chinese goods to 20 percent, only to announce two days after he would do so delay Some Mexican and Canadian introductory increases until April 2.

Trump also threatened to impose a global system for mutual definitions: every country will face the same tax that you choose to impose on American goods from April 2. 25 percent tariffs on imports Steel and aluminum He was also appointed to be valid on Wednesday.

The customs tariff appears to be intended to increase inflation and consumers will bear the highest costs. Many Americans can be forced to tighten their belts, which reduces growth and increased unemployment.

continuous Public sector discounts and Geopolitical tensions American policy fluctuations were also swollen. On CNBC, Holger Schmiding, the chief economist at Burnberg Bank, described Trump as “an agent of chaos and confusion”.

“What comes out of the Oval Office … is merely the lack of complete caution, confusion, mixed messages, and the investment community loses confidence,” said Peter Tuchman, a trader of the stock exchange. video Posted on X.

What did Trump really say?

in interview With the broadcast of Fox News broadcast on Sunday, Trump suggested that the risk of economic shrinkage – if it would happen – will be worth it in the issue of the broader economic transformations he tries to engineer.

“I hate to predict things like that. There is a transitional period because what we do is very large.” “We return wealth to America. This is a big thing … it takes some time, but I think it should be great for us.”

When asked if he believed that the definitions of American imports would increase inflation, he said: “You might get it. Meanwhile, what is the interest rates decreased.”

He also doubled on his protectionist commercial agenda, saying: “We are [the US] It is unprecedented in the levels that were unprecedented, and we will get many of them. “

How did the White House responded?

With the spread of Wall Street yesterday, the White House maintained an optimistic look, pointing to great investment pledges from corporate leaders.

White House spokesman Kush Disai said on Monday that CEOs responded to the Trump’s “America first” business schedule, which is characterized by definitions and definitions, by pledging “trillion in investment obligations.” He said that these obligations “will create thousands of new jobs.”

Meanwhile, in an interview with CNBC on Monday, Kevin Haysit, President of Trump’s National Economic Council, delivered “fluctuation in the market” as “Peter in Data”.

“There will be a recession in America … you will see during the next two years the largest group of growth coming from America,” Howard Lootnick, Trump’s Minister of Trade, told NBC’s Meet The Press.

Did the Wall Street tensions spread elsewhere?

Asian stocks decreased sharply on Tuesday morning, as the sale of the American market extended the previous day in the world. Nikki shares in Japan have decreased about 3 percent, and reached its lowest level since September.

Chinese stocks were also immune to the increasing mood. The blue chip index fell 0.5 percent, while the Hang Kong Index in Hang Sing was 0.8 percent lower. The Australian Standard Index also decreased by 0.8 percent.

The assets of safe haven-to which investors flow in periods of uncertainty in the market-are now required, as the Japanese yen touches the highest level of five months against the dollar, at 147.07 per dollar. It also enhances the Swiss franc. Both currencies are stable due to their expected economic backgrounds and low inflation environments.

Gold, which has long been considered financially safe, reaches $ 2,895.75 an ounce, at a touch of the record that reached its height last month. Gold has now increased by 10 percent so far in 2025, after an increase of 27 percent last year.

Oil prices, which are usually moved along with global GDP, decreased for the second day on Tuesday. Brent Futures, the global standard, decreased by 0.65 percent to $ 68.83 a barrel.

What will happen next?

Unlike Trump’s first period, when cracks in the economy or the stock market often lead to policy axes, the US President appears to be determined to pursue restrictions this time.

In turn, Citi analysts have cut their recommendation to the shares of the United States to “neutral” from “weight gain”, on the pretext that the American economy may no longer exceed the rest of the world in the coming months.

The economists in Goldman Sachs raised the possibility of recession within the next 12 months from 15 percent to 20 percent, while JPMorganchase raised the possibility from 30 percent to 40 percent “due to severe American policies.”

The return (or the rate of return) decreased on the US government bond for two years, which moves in a move with interest rate expectations, by 0.05 percent yesterday to the lowest level in five months. As such, many expect the US Federal Reserve to reduce borrowing costs.

The standard of the standard at the Federal Reserve is currently around 4.3 percentIt is high in modern historical standards.

Traders are now pricing 0.85 percent of interest rates from the Federal Reserve this year, compared to 0.75 percent of the basis point on Monday, According to the stock exchange group in London. Low borrowing costs are designed to help stimulate growth in slowing the economy.

“The markets have now obtained a memorandum that the administration is intending to tear ambulatory aid,” Brashant Newha, a major strategic expert on Asia Pacific Prices in TD Securities, told Reuters.

Since his first day in office, Trump stated his desire to do so Tame inflation. At the same time, he made a central trade tariff for his presidency. It is unlikely to achieve both political goals at the same time.

“The recession may be the medicine to create inflation … at the present time, it is a controlled demolition,” Ninanha said.