Stocks in the US and Asia fall as fears grow over economic slowdown

Published On Mar 10, 2025, 4:27 PM

US stock markets experienced a significant downturn, dropping sharply amid concerns over the economic implications of President Trump's tariffs. In a recent interview, Trump described the economy as being in a 'period of transition', fueling market volatility. Major indices like the S&P 500 and the Dow Jones saw declines of 2.7% and 2%, respectively. The tech sector was particularly hard hit, with Tesla shares falling over 15% and Nvidia down more than 5%. Investment strategists are reevaluating Trump's image as a stock market supporter due to these declines and concerns over potential recession. Despite these worries, some officials maintain a bullish outlook on the economy, citing ongoing investments in response to Trump's policies.

Stock Forecasts

TSLA

Negative

Given the current volatility and the concerns surrounding economic slowdown and tariff implications, it seems likely that the market will continue facing downward pressure. The overvaluation of tech stocks, alongside specific declines in companies like Tesla and Nvidia, contributes to a bearish outlook for these sectors. Furthermore, investor sentiment appears shaken, which typically leads to deflationary pressure on stock prices in the near term.

SPY

Negative

The overall apprehension surrounding President Trump's tariffs and the possible recession could lead to a broader market sentiment that favors defensive investments. Investors may start looking for safer positions or sectors less impacted by tariffs and economic fluctuations. If enough stability can be restored with favorable economic indicators, some rebound is possible, but for now, the general market sentiment appears to favor a negative outlook.

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US stocks looked set to build on losses of over 2% for the major indexes as March's struggles looked to continue.

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XLU
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President Donald Trump on Sunday declined to explicitly rule out a full-blown recession for the U.S. economy this year during an interview with "Sunday Morning Futures."

The S&P skidded 2.7 percent, amid investor fears that tit-for-tat tariffs could raise prices, slow the economy and sow uncertainty among businesses.