Global Rout in Bank Shares Intensifies as Recession Fears Mount
Global bank stocks tumbled on April 4, 2025, amid recession fears spurred by Trump's tariff hikes and China's retaliatory measures, with major banks reporting steep losses worldwide.
Published on April 5, 2025
On April 4, 2025, global bank stocks experienced a sharp selloff as investors reacted to U.S. President Donald Trump's aggressive tariff increases. European banks fell by 8% and Japanese megabanks suffered historic weekly losses of up to 22%, while major U.S. banks including JPMorgan Chase, Goldman Sachs, and Morgan Stanley saw significant declines. In response, China announced a 34% tariff on all U.S. goods, intensifying trade tensions and adding to the uncertainty in financial markets.
Investors are increasingly concerned that sweeping tariffs and retaliatory measures could stifle economic growth, reduce consumer spending, and slow down merger and acquisition activities, which in turn might force banks to reserve more for potential loan defaults. Alongside warnings from Fitch Ratings and forecasts of an impending 2025 recession, market analysts are keenly awaiting upcoming earnings disclosures that may detail strategies to weather the turbulent economic climate.