Global Markets Tumble Amid Heightened Trade War Fears

Global equity markets experienced declines as safe-haven gold reached record highs following President Trump's comments on tariffs potentially affecting all countries, raising recession concerns. Wall Street indices showed mixed results, while European and Asia-Pacific shares also fell. Analysts increasingly predict a U.S. recession and inflationary pressures, complicating market outlook.

Global equity markets suffered a setback on Monday as safe-haven gold soared to new records. This movement was triggered by U.S. President Donald Trump's comments indicating impending tariffs that might impact all countries, heightening fears of a global trade war and potential recession.

Despite initial losses, Wall Street's S&P 500 and Dow Jones rebounded with gains in various sectors, while the Nasdaq continued its decline, reflecting a broader dip in quarterly and monthly performance. Analysts at Goldman Sachs have adjusted their recession predictions, citing Trump's looming tariff announcements.

Stagflation concerns loom large as inflation metrics and consumer spending data stoke fears of economic downturn. Meanwhile, the dollar showed resilience against key global currencies, and bond markets anticipated potential Federal Reserve rate cuts. Energy markets also reacted to geopolitical tensions affecting oil prices.

(With inputs from agencies.)