Global stock markets fell on Tuesday after a sharp selloff in the United States, driven by concerns that President Donald Trump's tariffs could push the economy into recession.

The decline followed Trump’s remarks describing the economy as being in a “period of transition.” While he has not commented further, top officials have attempted to ease investor concerns. 

Analysts suggest that market confidence in Trump’s economic policies is wavering.

Asian markets mirrored Wall Street’s losses. Japan’s Nikkei 225 dropped 1.7%, South Korea’s Kospi fell 1.5%, and Hong Kong’s Hang Seng Index declined 0.7%. In the US, the S&P 500 slid 2.7%, the Dow Jones Industrial Average fell 2%, and the tech-heavy Nasdaq dropped 4%.

Tech stocks saw heavy losses, with Tesla plunging 15.4%, while Nvidia, Meta, Amazon, and Alphabet also suffered sharp declines. Analysts believe uncertainty over Trump’s trade policies is fueling investor anxiety.

"Trump is keeping both political leaders and investors guessing, and that’s weighing on market sentiment," said Tim Waterer, chief analyst at KCM Trade.

Concerns over tariffs have grown as investors fear they will lead to higher prices and slow economic growth. White House officials have defended the policies, arguing they have driven major investment into the US.

Despite market turbulence, Trump adviser Kevin Hassett dismissed fears of an economic downturn, insisting there were strong reasons to remain optimistic. He acknowledged “blips in the data” but attributed them to the timing of tariffs and what he called “the Biden inheritance.”

Economists warn that continued uncertainty could prompt businesses and consumers to hold off on spending, potentially weakening growth further.

Source: BBC

BDST: 0904 HRS, MAR 11, 2025
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