The markets responded with their worst performance since the early days of the COVID-19 pandemic:
- Copper, iron ore, oil, gold, and the Australian dollar all tumbled.
- The Nasdaq dropped 20 percent from its previous high.
- The Dow fell 2,231 points on Friday. This marks the fourth time in history it lost over 2,000 points in a single day.
- European and Asian markets also posted steep losses.
Trump Praises Tariff Strategy
Despite the backlash from economists and traders, Trump defended his actions on Truth Social.
“Oil prices are down, interest rates are down… there is NO INFLATION… the long time abused USA is bringing in Billions,” he wrote.
In a follow-up post, he added: “Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN… Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
Recession Fears Intensify
The volatility comes amid deepening concerns about a global recession.
JPMorgan’s Chief Economist Bruce Kasman increased the firm’s recession probability forecast to 60 percent for 2025—up from 40 percent. He noted that a similar surge in odds occurred in 1968, just before the U.S. entered a recession.
