Fear of recession rattled global markets, leading to a sharp decline in the S&P 500 and Nasdaq indices in the US. One of the biggest losses occurred in Tesla, Elon Musk’s electric vehicle company. The uncertainty caused by President Donald Trump’s tariffs fueled recession fears. S&P 500 futures dropped by 2.7% yesterday, marking the largest daily decline since September 2022, while Nasdaq recorded a 4% dip since the start of the year. The S&P 500 index has now lost a whopping $4 trillion from its peak last month. Asian markets followed Wall Street’s downward trend, with Japan’s Nikkei index dropping 1.35% to reach its lowest level since September.President Trump acknowledged the possibility of the country’s economy entering a recession or inflation increasing due to the tariffs imposed on Canada and Mexico. He expressed discomfort with making predictions regarding potential recessions or other related matters. Trump emphasized the transitional phase the economy is going through and reiterated the importance of bringing wealth back to America. The fear index, known as the VIX Index, surged by over 19% to 27.8. The 10-year US treasury bond yield fell to 4.22% while the dollar index rose by 0.10% to 103.9. In the US stock market, Tesla experienced one of the sharpest declines as its shares dropped by 15.43% to $222, with a total decline of over 50% since its peak in December. Nvidia, a company benefiting significantly from recent investor interest in artificial intelligence, saw its shares decrease by 5.1%. Market attention is now focused on the upcoming US inflation data. The Consumer Expectations Survey results released by the Federal Reserve Bank of New York revealed an increase in short-term inflation expectations among US consumers, rising from 3% to 3.1% for the next 12 months, indicating the first rise in short-term inflation expectations in four months.