Global Stock Markets Tumble as Tariff Fears Fuel Bond Rally
Global stock markets fell sharply amid recession fears spurred by new U.S. tariffs, while bonds rallied as investors sought safer assets and speculated about potential interest rate cuts.
Published on April 7, 2025
On April 6, 2025, global stock markets—especially in Asia and the U.S.—suffered significant losses amid mounting recession fears triggered by the Trump administration's new tariffs. The selloff, which extended a two-day market decline, has raised expectations for a potential U.S. interest rate cut as early as May and deepened concerns over policy uncertainty and trade tensions with China.
Investors responded by flocking to safe-haven assets such as U.S. Treasuries, the Japanese yen, and the Swiss franc, even as liquidity constraints and widening credit spreads added to the market volatility. As of April 7, major indices continued their downward trajectory, with analysts calling for clear signals from policymakers to stabilize sentiment and mitigate further economic fallout.