Markets are in turmoil as investors panic, triggering mass selloffs driven by heightened recession fears. Economic uncertainty and global instability have fueled widespread liquidation, leading to increased market volatility and concern over future financial stability.
From 30% at the beginning of 2025, JPMorgan now projects a recession for this year at 40%. Analysts attribute the rising probability of an economic downturn to “extreme U.S. policies.” Goldman Sachs has increased its recession probability to 20% and cautions that if policies remain the same, the situation might get worse.
Furthermore, Morgan Stanley is painting a depressing image. While inflation is predicted to continue strong, the bank now projects GDP growth to decelerate to 1.5% in 2025 and decrease further to 1.2% in 2026.
White House economic adviser Kevin Hassett is exhorting people to remain hopeful in spite of the anxiety. Speaking with CNBC, he remarked, “There are plenty of reasons to be hopeful about the future of the economy even if the numbers look rough right now.” Echoing a similar viewpoint, former President Donald Trump referred to the present as a “period of transition.”
Markets Beat Out a Tune.
With the S&P 500, Nasdaq, and Dow Jones all ending the day severely in the red, the stock market suffered greatly. The S&P 500 sank 2.7%, the lowest point since September. Declining 4%, the Nasdaq suffered its worst day since 2022; the Dow Jones plummeted around 900 points (2.1%).
Big Tech stocks lost a lot. The worst-performing stock in the S&P 500 this year, Tesla dropped 15%. Between 4% and 5% each, Nvidia, Apple, Meta, and Alphabet all dropped in a violent trading session.
Not untouched were crypto markets, either. On March 11, the total market capitalization dropped 7.5% to $2.6 trillion, wiping out almost $240 billion in value. Bitcoin fell below important support levels, dropping 4% to $76,784, then somewhat recovered to $79,000.
As panic permeates markets on unstable ground, investors wonder: is this a temporary downturn or the beginning of something far worse?
