Global Stock Markets Tumble: Tariff Tensions Usher Economic Uncertainty

U.S. stock indexes face a downturn as investor concern grows over tariffs announced by President Trump, set for Wednesday's 'Liberation Day'. Stocks fall globally, gold prices rise, and bond yields climb amid worries of global economic repercussions, inflation fears, and potential recession indicators.

Global stock markets faced intense pressure as major U.S. indexes were poised to open lower, with investors increasingly wary of risky assets. This reaction stemmed from apprehensions surrounding President Trump's imminent announcement of sweeping tariff plans, potentially straining the global economy.

President Trump, who views tariffs as a defense against global competition compromises, scheduled to announce a significant tariff plan, labeling it 'Liberation Day'. Earlier tariffs on aluminum, steel, autos, and increased tariffs on Chinese imports have already cast a shadow on U.S. stock markets, raising concerns of an economic slowdown.

Volatility rocked the market, with significant declines in major U.S. indexes and high-profile tech stocks such as Nvidia, Microsoft, and Tesla taking notable hits. Meanwhile, Goldman Sachs raised the likelihood of a U.S. recession, adjusting market forecasts to factor in potential Federal Reserve rate cuts as a reaction to the ongoing tariff effects.

(With inputs from agencies.)