Global Recession Fears Grow

Investors are increasingly concerned that President Donald Trump’s escalating trade war could lead to a global recession. According to The Economist, stock markets were rattled following the announcement of Trump’s new tariffs.

The Russell 3000, one of the broadest measures of the American stock market, dropped 5% on April 3 and another 6% the following day after China retaliated with its own tariffs, according to The Economist.

It also added that gold and the US dollar also showed unusual movements, while oil and copper prices plunged.

Concerns have intensified as bank stocks, particularly those exposed to economic cycles, have tumbled, and several private firms have delayed their public listings. The VIX, a measure of market volatility, has surged, prompting analysts to raise global recession odds to 60%.