Trade War Fears Spark Market Chaos, Rate Cuts Loom

Asian markets experienced significant turmoil on Monday due to the specter of a global trade war. This led to a notable drop in Wall Street futures, fueled by recession fears that could prompt U.S. rate cuts by May. Tariffs and their economic impacts remain at the forefront of investor concerns.

Asian markets were engulfed in turmoil on Monday as escalating fears of a global trade war triggered a sharp drop in Wall Street futures. Investors are increasingly betting on the possibility of a recession, pressuring U.S. rates to be cut as early as May.

The volatile trading saw S&P 500 futures fall 4.79%, while Nasdaq futures plummeted 5.78%. This comes on the heels of last week's nearly $6 trillion loss in market value. Nikkei futures also took a hit, dropping 3.9% to 31,105, suggesting a potential 3,000-point fall in the cash index.

The grim outlook for global growth continued to weigh heavily on oil prices. Brent crude fell by $2.12 to $63.46 a barrel, and U.S. crude declined by $2.05 to $59.94 per barrel. Despite these challenges, the White House remains firm in its tariff strategy, with China responding in kind through its own levies on U.S. goods.

(With inputs from agencies.)