The US stock market continued its decline on Monday as investors remained hesitant despite speculation of potential trade agreements and easing tensions in Europe. Reports of a possible 90-day pause on new tariffs offered a brief glimmer of hope but quickly faded as the S&P 500 reached a 14-month low, entering a bear market.
Major tech stocks such as Tesla and Apple experienced significant losses, while investors sought refuge in defensive and counter-cyclical names. President Trump defended the tariffs, claiming they were necessary to address trade imbalances and generate revenue for the US.
Global investment banks revised their economic forecasts in light of the situation, with Goldman Sachs raising the US recession probability to 45% and JP Morgan assigning a 60% chance of recession in the next twelve months.
Meanwhile, Europe showed signs of openness to negotiating lower trade barriers, with European Commission Vice President Maroš Šefčovič expressing willingness to discuss zero-for-zero tariffs. However, progress in talks with Washington has been slow, and European equities only saw a slight rebound in response to the news.
Overall, the market volatility and uncertainty highlight what some are calling the most significant paradigm shift since World War II, affecting not only US markets but also the global economy as a whole.
Source
Note: The image is for illustrative purposes only and is not the original image of the presented article.
