Stock markets slump on U.S., China economic fears

Stock markets fall as Trump's trade policy raises recession fears in US and China, impacting global economy.

Stock markets slipped on Monday (March 10, 2025) as investors fretted over the impact of President Donald Trump's trade policy on the economic growth of the United States and China, the world's biggest economies.

Wall Street's three main indexes opened in the red, with the tech-heavy Nasdaq falling 2%, after Mr. Trump himself declined to rule out the risk of a U.S. recession.

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"I hate to predict things like that," he told a Fox News interviewer on Sunday when asked directly about a possible recession in 2025.

"There is a period of transition because what we're doing is very big - we're bringing wealth back to America," he said, adding: "It takes a little time."

Mr. Trump's on-again, off-again tariff threats against Canada, Mexico, China and others have left the U.S. financial markets in turmoil and consumers unsure what the year might bring.

"Unease about the effect of Trump's tariffs hangs over financial markets at the start of the week," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.