Global markets were turned upside down by the fear of recession. The S&P 500 and Nasdaq indexes on the US stock market recorded sharp declines. One of the biggest losses occurred in Elon Musk’s electric vehicle company, Tesla.

Global markets were rattled by the fear of recession. The uncertainty caused by President Donald Trump’s tariffs exacerbated fears of recession. S&P 500 futures fell by 2.7% yesterday, marking the biggest daily drop since the beginning of the year, while Nasdaq recorded a 4% decline, its biggest since September 2022.

The loss in the S&P 500 index amounts to $4 trillion since its peak last month. Asian stock markets also declined parallel to Wall Street. After hitting its lowest level since September, Japan’s Nikkei index fell by 1.35%. TRUMP DID NOT SKIP THE POSSIBILITY OF RECESSION President Trump, in an interview two days ago, did not overlook the possibility that tariffs on Canada and Mexico could lead to a recession or increased inflation in the country this year. When asked whether a recession is expected this year due to tariffs, Trump said he “hates making predictions” about such matters.

Trump said, “We are in a transition period right now because what we are doing is very big. We are bringing wealth back to America. This is a very important thing. There are always periods that take a little time.” Trump also emphasized that tariffs could affect inflation but noted that interest rates have also decreased. MARKET FEAR IS GROWING The VIX Index, also known as the Fear Index, rose by over 19% to 27.8. While the 10-year US Treasury bond yield fell to 4.22%, the dollar index increased by 0.10 to 103.9. A BIG BLOW TO TESLA One of the sharpest declines on the US stock market occurred in Elon Musk’s electric vehicle company, Tesla. Tesla shares fell by 15.43% yesterday to $222. Tesla’s decline has surpassed 50% since its peak in December. Shares of Nvidia, one of the companies that has benefited most from investor interest in artificial intelligence recently, fell by 5.1%. INFLATION INCREASE SIGNAL All eyes in the markets turned to the US inflation data to be announced this week. The results of the Consumer Expectations Survey released by the Federal Reserve Bank of New York before inflation data showed that short-term inflation expectations in the US have increased. The short-term median inflation expectation for the next 12 months rose from 3% to 3.1% last month, marking the first increase in short-term inflation expectations in four months.