Markets suffered a significant decline yesterday, with US stock exchanges experiencing their worst one-day drop since the pandemic began. Some experts even described the day as a “bloodbath.”
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The S&P 500 fell by as much as 6%
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The Nasdaq dropped up to 5.9%
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The Dow Jones was down 5.4%
It wasn’t just the US — markets around the world followed suit. In the UK, the FTSE 100 fell by 5%, and stocks in Tokyo also declined sharply.
Tariffs spark recession warning from JP Morgan
JP Morgan has warned that new tariffs introduced by Donald Trump could push the U.S. economy into a recession.
Here’s what’s happening:
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A 10% tariff (extra import tax) is now being applied to nearly all countries, with some of these increasing to 50% by April 9.
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In response, China hit back with its own 34% tariffs on all U.S. imports, raising fears of a global trade war.
As a result, JP Morgan has slashed its forecast for U.S. economic growth:
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They now expect the U.S. economy to shrink by 0.3% this year — a major drop from their earlier prediction of 1.3% growth.
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The bank also predicts that unemployment could rise to 5.3%, up more than a full percentage point.
Michael Feroli, JP Morgan’s chief U.S. economist, said the country is likely to enter a recession in the second half of the year.
Stock markets reacted badly to the news — and to President Trump’s promise that his policies would “never change.” Over the past few days, more than $5 trillion has been wiped off U.S. stock values.
JP Morgan also warned that the impact on everyday Americans — especially from rising prices on imported goods — could be worse than the inflation spike after the pandemic.
