US Markets Dive Amid Growing Recession Fears and Uncertainty Over Trump’s Economic

In the US, all three major indices opened lower. The S&P 500 dropped by 2.27%, the Dow Jones Industrial Average (DJIA) closed at 41,998.54, representing a decline of 1.88% (803.18 points) and the Nasdaq Composite tumbled 3.60%, led by significant losses in technology stocks. Tesla (NASDAQ:TSLA), Alphabet (NASDAQ:GOOGL) and Nvidia (NASDAQ:NVDA) were among the worst performers, with Nvidia plunging approximately 5.80%. This was driven by mounting fears of a looming recession in the US. Investor sentiment was rattled after US President Donald Trump, in a Fox News interview on Sunday, refused to rule out the possibility of an economic downturn, describing the current period as "a transition" due to significant policy changes. His comments, coupled with ongoing uncertainty surrounding his fluctuating tariff policies on major trading partners Mexico, Canada, and China, added to market unease. JPMorgan economists now estimate a 40% chance of a US recession this year due to "extreme policies."

The FTSE/JSE All Share Index closed at 87 291.39, a decline of 1.44% for the day. At 19h15 the rand traded at R18.26 to the dollar, reflecting ongoing concerns about inflation and economic stability as South Africa approaches the much-awaited budget speech on 12 March. The speech will outline government spending priorities and fiscal policies for the year, with analysts closely monitoring how the government intends to tackle critical issues such as unemployment, infrastructure development, and public service funding. Furthermore, a debate surrounding Black Economic Empowerment (BEE) is intensifying, with significant political shifts suggesting that opposition forces may be gaining momentum to challenge the policy for the first time in three decades.

European stocks closed sharply lower on Monday, extending their volatile momentum after reaching record highs two sessions earlier, as markets continued to assess the impact of increased public spending in major Eurozone economies and tariffs from the US on corporate earnings. The Eurozone’s STOXX 50 fell by 1.60%, closing at 5 383, while the STOXX 600 dropped 1.30%, ending at 546. The technology sector was the worst performer, mirroring the decline seen in their US counterparts during afternoon trading, as ongoing skepticism regarding future AI revenues contributed to a rotation out of the sector. ASML (AS:ASML), SAP, and Infineon saw declines ranging from 5% to 4%.

Asian markets displayed mixed performances with the Nikkei marking a slight increase of 0.38% (141.10 points) to 37 028.27, driven by gains in semiconductor-related shares despite broader market volatility. Meanwhile, the Hang Seng Index fell by 1.84%, impacted by concerns over slowing economic growth in China and its effect on regional markets. Overall, investors in Asia sought safer assets, leading to increased demand for US Treasury bonds and pushing yields lower.

Commodity markets exhibited mixed performances as well. Oil prices continued to decline, with Brent crude at $69.44 per barrel. The decline was attributed to OPEC+'s decision to increase production next month. Gold futures edged lower by 0.29%, closing at $2,904.31 per ounce, while platinum fell by 0.02% at $963.75 per ounce.



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