Trump Triggers Recession Fears as U.S. Stocks and Crypto Markets Plummet

In Brief

U.S. stock markets suffered a major sell-off, with the Nasdaq falling 4% and tech giants losing $830 billion in market value.

Bitcoin dropped to $76,600, its lowest in four months, while Ethereum and Solana also faced heavy losses.

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On March 11, the U.S. financial markets faced a sharp downturn, triggered by President Donald Trump’s comments on the economy entering a “transitional period.” His remarks fueled concerns over a potential recession, weakening investor confidence amid ongoing uncertainty surrounding his tariff policies.

The S&P 500 fell 2.7%, marking a new closing low since September 2022. The Dow Jones dropped 2.08%, erasing all gains made since the November 2021 election, while the Nasdaq plunged 4%, recording its worst single-day loss since September 2022. Tesla led the declines, crashing over 15%, with its stock price now halved from its all-time high.

The market-wide panic spilled over into the crypto sector, with Bitcoin plummeting to $76,600, its lowest level in nearly four months, before rebounding slightly to $79,125 (-3.5% in 24 hours). Ethereum (ETH) fell below $1,800, marking its lowest price since October 2023, while Solana (SOL) and other altcoins saw similar sell-offs.

In the foreign exchange and commodities markets, risk-off sentiment pushed up the U.S. dollar index, while international oil prices declined by 1.5%. Gold also dropped by 0.7% as investors took profits amid market weakness.

Market analysts note that Trump’s tariff policies and economic strategy could allow short-term economic pain to achieve long-term trade objectives. With the Federal Reserve in a silent period before the March 19 FOMC meeting, investors are left without new guidance, adding to uncertainty.

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