Global Markets Plunge as Trump Tariffs Spark Fears of Recession

Wall Street is experiencing significant declines, with the S&P 500 poised to enter bear market territory following President Trump's announcement of new tariffs that have prompted retaliatory measures from China. Futures for major U.S. indexes fell sharply, with the S&P 500 down over 20% from its peak, marking its most severe two-day loss since March 2020, erasing nearly $5 trillion in market value. The global response has been dramatic, with Asian markets like Hong Kong's Hang Seng index crashing by 13.2%, and European shares reflecting the turmoil, led by Germany's DAX index. Investors are fleeing to government bonds amid worries about recession and inflation stemming from the trade war. Analysts note that unless there are fundamental changes, such as a reversal of tariffs or improved economic outlooks, the market may continue to face volatility. The situation has sparked discussions among EU trade ministers regarding their response to the U.S. tariffs, with calls for aggressive measures against American tech giants.