Worst Stock Meltdown Since Covid Deepens as Recession Odds Soar

The president’s decision drove Wall Street strategists and economists to revise their outlooks.

Photographer: Scott Eells/Bloomberg

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In every corner of the financial markets, from stocks to bonds to commodities, investors sent Donald Trump the same unmistakable message: The trade war he unleashed is threatening to set off a worldwide recession — and fast.

With China retaliating less than 48 hours after the US president rolled out his punitive tariffs, traders are pricing in what increasingly looks like a negative-feedback loop as Trump shows little signs of backing down.