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Historic fall in US markets, atmosphere of fear is at its peak. US stock markets are facing one of the biggest declines ever. After President Donald Trump imposed shocking tariffs, the market has seen a massive sell-off in three days, raising the threat of recession.

What happened on Monday? S&P 500 futures fell 2.2%, close to a bear market. Dow Jones futures fell 837 points, or 2.1%. Nasdaq-100 futures fell 2.2%. The S&P 500 fell 6% on Friday – the worst day since the Covid crash of March 2020. The Nasdaq fell 22% and went into a bear market. Trump said: - I don't want the market to fall, but sometimes bitter medicine has to be taken to cure the disease. Commerce Secretary Howard Lutnick clarified: - "The tariffs will remain in place, they will not be removed for a few weeks. Finance Minister Scott Besant said: - More than 50 countries want to negotiate, but they have been adopting wrong methods for a long time. The Trump administration is not in the mood to remove or postpone the tariffs, which has further increased the uneasiness in the markets. Fear in the market is at its peak - CBOE VIX (fear meter) touched the level of 60 on Monday morning. (VIX had reached between 60–80 during the Covid recession.) Fund houses and hedge funds are now selling their equity holdings and accumulating cash to meet margin calls. Chris Rupkey, Chief Economist of FWDBONDS said: - Investors have expressed great displeasure over Trump's 'Liberation Day' tariffs. Bitcoin fell below $77,000 on global impact. US crude oil fell below $60 per barrel Hong Kong's Hang Seng index fell 13% - the biggest drop since 1997. Germany's DAX fell by 10%. Tesla shares fell 6% in the pre-market. Caterpillar (construction equipment manufacturing company) fell 5%. Bill Ackman's warning - Famous investor Bill Ackman has written on social media that if Trump still does not take timely action, then we are heading towards a recession created by our own hands. Trump's tariff decisions have shaken the American and global markets. If no leniency is shown soon, then the risk of a further big decline in the markets and economic recession may increase.


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