The sharp and persistent decline in global equity markets—fueled by President Donald Trump’s aggressive tariff policy—is testing the resolve of investors and the stability of the financial system. Since April 1, the S&P 500 has fallen more than 10%, sending shockwaves across asset classes and raising concerns among economists and strategists who are watching closely for early signs of a financial crisis. Although traditional measures of market stress like high-yield credit spreads and interbank funding rates remain relatively stable, the sustained pressure on equities is rattling confidence. “It’s kind of a slow-moving shift in that direction [of a crisis],” said Jens Nordvig, founder of Exante Data. The longer tariffs remain in place, he warns, the more likely pressure will build on the banking sector—and potentially the broader economy. The fear is less about an immediate crash and more about systemic cracks forming under the surface. Unusual movements in both equities and fixed ...

Manufacturers and importers are facing a harsh new reality under President Donald Trump’s sweeping tariff plan, with few viable alternatives left to mitigate its effects. The White House’s move last week to impose steep new levies — including 34% on goods from China, 26% on India, and 20% on the European Union — has triggered widespread alarm across global markets and boardrooms. During Trump’s first administration, manufacturers reacted to China tariffs by pivoting production to other low-cost countries like Vietnam and Mexico. Now, those options are disappearing. With Vietnam facing a 46% tariff and Mexico hit with 25% on a broad swath of goods, the list of tariff-free havens is dwindling fast. "Broad tariffs across global trading partners, unlike prior narrower bilateral ones, limit the ability of the global trading system to adapt,” wrote Deutsche Bank economists. “This comes at the cost of fundamentally undermining global supply chain models that have emerged over the past se...

As President Donald Trump’s sweeping new tariffs begin to take effect, cracks are emerging not just in global markets but within the wealthy and powerful circles that once offered quiet support. While administration officials argue that the 10% universal import tariff will have little impact on U.S. consumers, a growing number of corporate leaders, investors, and economic experts are voicing concern — publicly and privately — over what they describe as an unfolding economic crisis. Markets Crash, CEOs Stay Silent — For Now The stock market reaction has been brutal. Following Trump’s announcement of blanket tariffs on all U.S. imports — with additional, steeper levies targeting 185 nations — the Dow, S&P 500, and Nasdaq entered steep declines. In just two days, U.S. markets lost over $6 trillion in value, marking the worst rout since the early days of the COVID-19 pandemic. Despite the damage, America’s top CEOs have largely stayed out of the spotlight. At the recent Yale CEO Caucus...

U.S. markets recorded their worst week since the 2020 pandemic collapse amid rising fears that recently imposed tariffs will drag the economy into a downturn. Key Takeaways: JPMorgan ( JPM ) is the first major Wall Street firm to forecast a U.S. recession tied to Trump's new tariffs, expecting GDP to shrink in the second half of 2025. The firm projects a stagflationary scenario, with core inflation rising to 4.4% and the unemployment rate climbing to 5.3%. Rising prices and slowing growth may complicate the Fed’s ability to cut rates aggressively. Equity markets responded sharply, with the Nasdaq entering a bear market and the S&P 500 nearing a 20% drawdown from recent highs. Markets Sink on Escalating Recession Concerns The S&P 500 and SPY both lost nearly 6%, the Dow Jones Industrial Average dropped over 5%, and the Nasdaq Composite plummeted almost 6%, officially entering a bear market. The trigger: mounting evidence that the economic impact of President Trump's reci...

Global markets are under strain as escalating tariff conflicts unsettle investors and businesses alike.  Key Takeaways: Trade tensions between the U.S. and China have escalated, contributing to market volatility and economic uncertainty. Economic indicators—including GDP contraction, falling consumer sentiment, and declining capital spending—point toward a rolling recession. Inflation is easing rapidly, with oil prices under pressure and monetary velocity weakening. Innovation in automation and AI may drive productivity-led growth, possibly ushering in a deflationary boom. Financial markets remain cautious but stable, with bond spreads and commodity prices reflecting subdued inflation expectations. Tariff Turmoil Raises Stakes for Global Growth What began as a tense negotiation has evolved into a full-blown trade standoff, with the U.S. and China exchanging sharp tariff hikes. President Trump’s push for tariff reciprocity—though rooted in fair trade principles—has injected volatili...

Guess? Inc. ( GES ) staged a notable recovery in trading Thursday, with shares jumping more than 10% following its Q4 earnings release, even after a shaky start that saw the stock drop over 5% at the open. The fashion retailer posted a 5% revenue increase year-over-year to $932.3 million, beating analysts’ expectations by nearly $26 million. Adjusted earnings per share (EPS) came in at $1.48, comfortably ahead of the $1.38 consensus. The market’s early volatility stemmed from mixed full-year fiscal 2026 guidance. While management projected revenue growth of 3.9% to 6.2%, surpassing analyst expectations, it guided to adjusted EPS of $1.54 at the midpoint—missing the Street’s forecast by more than 20%. A sharp year-over-year drop in operating margin, from 16.3% to 11.1%, added to concerns about profitability. Still, CEO Carlos Alberini struck an optimistic tone, pointing to a robust close to the fiscal year and momentum driven by the rag & bone acquisition and licensing growth. Exclu...

In a sharp response to President Donald Trump’s sweeping tariff increases, China announced a 34% tariff on all U.S. imports beginning April 10. The move sent Chinese markets tumbling, with the China 33.22 index sliding nearly 2% in a single session. No sector was spared from the sell-off. Technology giants Alibaba ( BABA ), JD.com ( JD ), and Baidu ( BIDU ) joined automakers like Nio ( NIO ) and XPeng ( XPEV ) and consumer-facing firms such as Trip.com and Yum China in deep red territory. E-commerce powerhouse PDD, operator of the fast-growing Temu platform, failed to attract buyers even after a brutal Thursday for tech stocks. Market sentiment soured further following Trump’s decision to close the de minimis trade loophole—an essential pillar of Temu and rival Shein’s U.S. strategy. Chinese stocks, already under pressure from increased scrutiny and geopolitical tensions, are now contending with what appears to be the opening salvo of a prolonged trade conflict. Investors, faced with l...