Global stock markets experienced a significant downturn on March 26, 2025, fueled by growing fears of a potential global recession and uncertainty surrounding President Trump's tariff policies. The sell-off, which began on Wall Street, extended into Asian markets, with Japan's Nikkei 225 dropping 1.74% to 36,382.57 and Australia's S&P/ASX 200 falling 0.88% to 7,891.90.
The decline was broad-based, affecting technology, mining, and export-oriented sectors. In Japan, SoftBank Group fell almost 4%, while Toyota declined 3.5%. Australian tech stocks like Afterpay owner Block slid almost 8%. Delta Air Lines previously cut its profit forecast due to declining consumer confidence, signaling broader economic concerns.
Trump's refusal to rule out a recession and his hard stance on tariffs against major trading partners like Canada, Mexico, and China have further unsettled investors. Analysts at JPMorgan Chase now estimate a 40% chance of a global recession. This market volatility reflects increasing anxiety over the future of global economic health and the potential impact of trade policies on international commerce.