Markets Plunge Amid Recession Fears 📉

Stock markets tumbled on Monday, with Japanese shares plummeting 13% as fears of a U.S. recession sent investors fleeing from risk and betting on rapid rate cuts to rescue growth. The yen and Swiss franc surged as carry trades unwound, triggering speculation that investors were offloading profitable trades to cover losses elsewhere. Circuit breakers were activated across Asia as Nasdaq futures fell 4.7% and S&P 500 futures dropped 12.4%. Japan’s Nikkei hit seven-month lows with a 13% loss, and Asia-Pacific shares outside Japan fell 4.2%. Treasury bonds saw increased demand, with 10-year yields hitting 3.723%, the lowest since mid-2023. Analysts are divided on the likelihood of a U.S. recession, with Goldman Sachs estimating a 25% chance and JPMorgan predicting a 50% probability. Key earnings reports from companies like Caterpillar and Walt Disney this week will provide more insights into the economic outlook.