New York Stock Exchange Plunges Amid Fears of Recession and Trade Tensions
The New York Stock Exchange suffered a severe correction on March 10, with major indices plummeting: the Dow Jones fell by 2.08%, the S&P 500 by 2.70%, and the Nasdaq, dominated by tech stocks, dropped by 4%, its largest decline since 2022. Tech giants were particularly hard hit, with Tesla losing 15.43%, Nvidia 5.07%, and Apple 4.85%, amidst fears of recession and trade tensions fueled by Donald Trump's policies.
Concerns intensified after Trump's evasive comments on a possible recession and Treasury Secretary Scott Bessent's announcement of an economic "detox" period, marked by drastic cuts in public spending. These factors, combined with risks of slowing growth, pushed the bond market to react, with the yield on 10-year Treasury bonds falling from 4.30% to 4.22%. Trade tensions with Canada and Mexico also contributed to the uncertain climate.
Attention is now turning to the release of the Consumer Price Index (CPI) for February, expected on March 13, which could influence the Fed's decisions. Investors are torn between hopes of stabilization and fears of a worsening crisis, in a context where economic policies and trade conflicts threaten to prolong the turmoil in the markets.
