Recession Fears Rattle US Markets Amid Trade Tensions

The US stock markets are facing a tumultuous period as fears of a looming recession grip investors. Technology stocks, including giants like Tesla, Alphabet, and Nvidia, are suffering significant losses, with the Nasdaq Composite Index notably down. The broader S&P 500 and Dow Jones have also taken a hit, reflecting widespread market anxiety.

Central to these concerns is President Trump's unpredictable tariff policy, which has sparked a trade war, primarily with China. This has led to increased volatility in global markets, with ripple effects felt from Hong Kong to Europe. Economists are now warning of a rising risk of a 'Trumpcession,' driven by the administration's aggressive trade measures and policy shifts.

Amid this climate, major financial institutions like Goldman Sachs and Morgan Stanley have revised their economic forecasts, pointing to reduced growth prospects. Investors are increasingly seeking refuge in safer assets, such as bonds, as consumer confidence wanes. Despite these challenges, President Trump remains optimistic about his policies, though the market's reaction suggests a growing uncertainty about the future economic landscape.