Despite the White House’s efforts to minimize concerns, cryptocurrency and tech stocks saw a significant decline on March 10 as worries about a U.S. recession increased. Recession risk estimates for this year have increased from 30% to 40% by early 2025, according to economists at Wall Street investment firm JPMorgan.
“We see a significant risk that the U.S. could slip into a recession this year due to overly aggressive American policies,” the Wall Street Journal reported. Goldman Sachs analysts also raised their likelihood of a 12-month recession from 15% to 20%. They pointed out that that prediction might increase even more if the Trump administration continues with its plans in spite of extremely bad facts.Last week
Morgan Stanley economists increased their projections for inflation and decreased their predictions for economic growth. According to the bank, GDP growth would only reach 1.5% in 2025 and 1.2% in 2026.
This is despite the fact that one of Donald Trump’s top economic advisors rejected the idea of a recession. The head of the National Economic Council, Kevin Hassett, told CNBC on March 10 that there are many reasons to be hopeful about the U.S. economy.
He stated, “There are many reasons to be extremely optimistic about the economy going forward.” “But there are definitely some glitches in this quarter’s data.”
In the meantime, Donald Trump stated that the U.S. economy is going through a “period of transition” in response to a question concerning the likelihood of a recession in an interview with Fox News on March 9.
Recession odds are “currently the best-looking charts in finance,” according to a humorous statement made by blockchain betting platform Polymarket.
The so-called “Trump bump” has subsided, and the S&P 500 is currently down from its pre-Trump level following the November 5 U.S. election triumph.
The Nasdaq has already entered correction territory after losing 14% in only three weeks, and the index has dropped by about 10% from its peak last month.
On March 10, all U.S. stock markets ended the day lower. The tech-heavy Nasdaq experienced its worst day since 2022 with a 4% decrease, the Dow Jones Industrial Average plummeted by almost 900 points, or roughly 2.1%, and the S&P 500 fell 2.7%, reaching its lowest level since September.
The Magnificent 7, America’s leading tech companies, had a turbulent start to the week, dropping more than $750 billion in market worth in a single day. With a steep 15% decline, Tesla became the S&P 500’s worst-performing stock this year.
On the same day, the AI behemoth Nvidia saw a 5.1% loss, Apple saw a 4.9% drop, Meta saw a 4.4% decline, and Alphabet saw a 4.5% decline.
With a 7.5% decline in overall market capitalization on March 11 to $2.6 trillion, the cryptocurrency market fell to its lowest level since early November; almost $240 billion has left the industry.
