Global Stock Market Slump: Sensex, Nifty Crash 5% as Trump Tariffs and Trade War Fears Trigger Massive Sell-Off – Can the Bull Market Recover or Will the Bear Market Take Over

Global Stock Market Slump: Adding to the panic, fears of an impending recession in the US weighed heavily on investor sentiment, wiping out Rs 16.19 lakh crore in market value during the April 7 session.

The stock markets took a heavy hit today, driven by mounting concerns over a global trade war. China hit back with a 34% tariff on the US, following the Trump administration imposing similar tariffs on over 60 countries, including a 54% levy on China and 26% on India. In a brutal Monday meltdown, the Nifty50 dropped 5% in intraday trading, marking its worst single-day performance since the June 2024 Lok Sabha election result shock.

This sudden plunge has brought back painful memories of previous market crashes and raised new fears that a bear market may be just around the corner. With the Nifty now down 15.66% from its peak, it’s just 1,140 points away from officially entering bear market territory. What does this mean for investors as the markets tumble and uncertainty looms large?

Global Stock Market Slump: Sensex, Nifty, Nikkei, and Hang Seng Crash Amid Escalating Trade War Concerns

On Monday, global stock markets faced a severe downturn, as Japan’s Nikkei 225 plummeted nearly 9%, triggering an automatic halt in futures trading after hitting circuit breakers. In Hong Kong, the Hang Seng Index also faced a sharp 8% drop, signaling widespread panic across financial markets. The Indian stock market, which had managed to hold steady on Friday, followed this downward spiral, opening with a dramatic 5% loss as it tracked the bearish trend sweeping across Asian markets.

10%. Tata Motors was also hit hard, dropping over 9%. Major blue-chip companies, including Infosys, HCL Technologies, Tech Mahindra, Reliance Industries, TCS, and L&T, witnessed severe losses, underscoring the growing market anxiety. This massive sell-off is not only a response to the intensifying global trade war but also an indication of mounting recession fears, which have sparked investor panic on an international scale.

As fears of a full-blown trade war between the US and China continue to escalate, global market instability is expected to intensify, leaving investors and analysts on edge. The question remains—will this be the start of a prolonged bear market, or can the markets rebound from this latest shock?

Goldman Sachs Raises U.S. Recession Odds to 45% as Trade War Risks Escalate

Goldman Sachs has sharply increased its forecast for a U.S. recession, now predicting a 45% chance in the next 12 months, up from 35% just a week ago. This is the second time in a short span that the investment bank has revised its recession outlook, driven by intensifying concerns over the impact of U.S. President Donald Trump’s escalating trade war and the tariffs he has imposed.

Earlier last week, Goldman had already raised its recession forecast from 20%, citing fears that Trump’s tariff policies would disrupt global economic stability. A few days later, the U.S. president’s announcement of steeper-than-expected tariffs triggered a widespread market sell-off, deepening worries about a potential economic slowdown.

In addition to revising its recession forecast, Goldman Sachs also lowered its growth projection for the U.S. economy in 2025, now expecting just 1.3% growth, down from an earlier estimate of 1.5%. While this is a more modest outlook than other institutions, such as Wells Fargo Investment Institute (WFII), which predicts a 1% growth, or J.P. Morgan’s prediction of a 0.3% contraction, it reflects the growing uncertainty surrounding U.S. economic performance.

Growing Recession Fears and the Impact of Trade War Uncertainty

As Goldman Sachs and other major financial institutions adjust their recession forecasts amid escalating trade tensions, the risk of a U.S. economic slowdown is becoming increasingly apparent. With Goldman Sachs now raising the odds of a U.S. recession to 45%, and JPMorgan warning of a potential contraction as early as this year, the global market is on edge.

The continuing uncertainty surrounding President Trump’s tariffs and their long-term effects on global supply chains and investor sentiment is weighing heavily on growth projections. While some experts, like Goldman, predict moderate growth, others foresee a more pronounced slowdown.

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