Today, U.S stock futures are bracing for further setbacks after a $2.5 trillion wipeout this week. Before the bell, stock futures plummeted following the announcement of China’s 34% reciprocal tariff on all U.S. imports,
Today, the Dow Jones fell 3.2% or over 1,300 points, S&P 500 futures dropped 3.4%, while contracts on the Nasdaq dropped 3.7%.
J.P Morgan’s Bruce Kassman warned markets that following “Liberation Day” a recession this year is even more likely, with a 60% possibility. “The current positioning of the US and global expansion points to limited vulnerability that might suggest a relatively mild downturn. But recessions are inherently unpredictable,” Kasman said.
“These policies, if sustained, would likely push the US and possibly global economy into recession this year… a scenario where rest of world muddles through a US recession possible but less likely than global downturn,” Kasman concluded.
Investor worries include a fear that countries affected by tariffs may be more likely to retaliate than negotiate, potentially leading to a global trade war. Trump stated that his tariff rollout is”going very well” and that he is open to “phenomenal” offers from countries wishing to negotiate the terms of his tariffs.
By CEO NA Editorial Staff
