Stocks Plunge as Markets Brace for Rapid US Rate Cuts

Global stock markets experienced a sharp selloff on Monday amid intensifying fears of a U.S. recession. Persistent tariff policies from President Trump have fueled investor anxiety, with major Asian indexes such as Japan’s Nikkei and South Korea’s KOSPI suffering losses between 5% and nearly 10%. U.S. and European futures also dipped, and heavy bets are being placed on the Federal Reserve implementing rapid rate cuts to stabilize declining markets.

Supplemental reports from April 6 and 7, 2025, highlighted that the turmoil spread quickly as valuation losses approached trillions. Additional details from sources like Reuters and Axios noted that investors, facing a backdrop of escalating trade tensions and a flight to safe-haven assets like U.S. Treasuries and the Japanese yen, remain cautious amid the possibility of multiple rate cuts in 2025. Despite the volatile environment, President Trump and his administration have maintained their tariff strategy, setting the stage for further market uncertainty in the coming days.