Wall Street Crashes Amid Trump Recession Fears! 🚨 In a dramatic turn of events, Wall Street's stock markets took a nosedive as fears of a Trump-induced recession gripped investors. The Nasdaq and the S&P 500 experienced their biggest one-day drop since September 2022, with the tech-heavy Nasdaq Composite plummeting by as much as 5% to its lowest level since September.
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This came after President Trump announced that the world's largest economy is facing "a period of transition."
The benchmark S&P 500 dropped by 3.6%, while the Dow Jones Industrial Average fell by 2.8%, a staggering decline of over 500 points. Wall Street is now reassessing the outlook for the US economy, with Morgan Stanley warning that the S&P 500 could drop another 5% to 5,500 points by mid-year. The index has already slumped more than 3% in 2025 and by 7% from its peak in February.
HSBC has downgraded its rating on US stocks, advising investors to be "neutral" on Wall Street companies, down from its previous "overweight" guidance. Tracy Chen, a portfolio manager at Brandywine Global Investment Management, highlighted the increased recession risk due to Trump's policies, stating, "Recession risk is definitely higher because of the sequence of Trump's policies – tariffs first, tax cuts later."
Gennadiy Goldberg, head of US interest rate strategy at TD Securities, echoed this sentiment, noting that the market has shifted from exuberance about growth to absolute despair.
Just weeks ago, questions were being raised about the US economy's re-acceleration, but now the dreaded "R word" is being brought up repeatedly.
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