Wall Street Plummets Amid Recession Fears Under Trump

Wall Street experienced a significant downturn, with the S&P 500 losing 2.7%, wiping out most gains since the election amid fears of a recession linked to President Trump's tariffs and economic policies. Trump’s remarks during a Fox News interview about a 'period of transition' without ruling out a recession fueled investor anxiety, leading to declines in major indexes like the Dow Jones and the FTSE 100. Economic uncertainty is reflected in rising inflation expectations and growing pessimism among American consumers, particularly those without a college degree. The market selloff has also impacted sectors like agribusiness, with farmers delaying investments due to concerns over the economy. Additionally, the global market sentiment has turned risk-off as traders react to the shifting economic landscape, with bond yields retreating despite a typical rise in the USD during such phases. Overall, the combination of tariff-related fears and consumer sentiment is shaping a challenging economic outlook.