Trump triggers recession panic, US stocks and cryptocurrency markets both plummet

News on March 11, Trump's weekend statement about the US economy facing a "transition period" weakened investor confidence in policy shifts against the backdrop of market crashes, intensifying economic worries.

On Monday, all three major U.S. stock indices plummeted sharply. The SP 500 index fell by 2.7%, hitting a new closing low since September last year; the Dow Jones dropped by 2.08%, erasing gains since the U.S election in November last year; and Nasdaq fell by 4%, marking its biggest daily drop since September 2022.

Large tech stocks fell across the board, with Tesla falling more than 15%, marking its largest decline since September 2020 and halving from its historical high point. The combined market value of the seven tech giants evaporated over $830 billion on Monday, setting a record for single-day market value loss.

The "Black Monday" of U.S stocks crashed the crypto market as well. Bitcoin hit a low of $76,600 USD - a four-month low that essentially returned to levels when Trump won his election last year - before slightly rebounding to $79,125 USD at time of writing with an approximately decrease of around 3.5% within past twenty-four hours . Mainstream altcoins including ETH and SOL also suffered heavy losses; Ethereum broke below $1,800 USD for first time since October in year prior (2023).

In recent two months , uncertainty over Trump's tariff policies has been continually exacerbating fears about an American economic recession among markets . Increasingly more viewpoints believe that to achieve long-term goals such as tariffs and reducing government size , Trump might tolerate short-term difficulties for both economy and markets .

Currently , Federal Reserve has entered quiet period ahead of FOMC meeting scheduled for March nineteenth ; thus , markets are unable to obtain any new policy guidance from official statements .