- Asian stocks hit a five-week low following a $4 trillion Wall Street sell-off.
- The Nasdaq 100 suffered its worst trading day since 2022, with Tesla slumping 15%.
- Investors fear Trump’s economic policies could push the U.S. into recession.
Asian markets faced significant volatility following a sharp sell-off in the U.S., where the Nasdaq 100 plunged and major tech stocks suffered heavy losses.
While markets remain on edge, some Asian indices managed to recover slightly from their early declines. Investors are closely watching Washington for policy clarity, as uncertainty looms over how Trump’s administration will navigate trade relations and economic recovery.
Global Stocks Shaken as U.S. Market Crash Stirs Recession Fears
Asian stock markets tumbled after Wall Street suffered a historic $4 trillion wipeout, raising concerns about a looming U.S. recession. The sell-off was led by the tech-heavy Nasdaq 100, which recorded its worst day since 2022, as major firms like Meta, Alphabet, and Nvidia took substantial hits. Tesla also faced a sharp decline, driven by backlash against Elon Musk‘s political endorsements.
Investor sentiment has been shaken by Trump’s economic policies, with fears that his second term could bring further trade wars and spending cuts. Despite previously boasting about stock market gains, Trump has remained relatively quiet amid the latest turmoil, offering vague assurances that “wealth is returning to America.”
Despite the heavy losses, some Asian indices pared back their early declines, signaling cautious resilience. The Hang Seng and SENSEX indexes showed slight recoveries, while U.S. equity futures pointed to marginal gains. However, analysts warn that market volatility could persist as global investors seek clarity on economic policy.
Bond markets also reflected the uncertainty, with U.S. Treasury yields hitting their lowest levels since October. A weakening dollar further compounded concerns, suggesting that investors are bracing for prolonged economic turbulence. Whether this downturn is temporary or marks the start of a broader financial crisis remains to be seen.
The global markets are in flux, with investor sentiment swinging between panic and cautious recovery. Until clearer economic policies emerge from Washington, volatility is likely to persist, keeping global investors on edge.
“Markets can remain irrational longer than you can remain solvent.” – John Maynard Keynes
