BREAKING: Wall Street in Freefall Amid Trump Tariff Fallout — Markets Plunge, Recession Fears Surge

This morning, Wall Street is being rocked by a financial meltdown not seen in years, as U.S. markets are slammed in the wake of President Donald Trump's newly announced tariffs — and China’s swift and aggressive retaliation.

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The NASDAQ 100 has plummeted 20% from its recent record highs, officially putting the tech-heavy index on the verge of a bear market. The Dow Jones Industrial Average cratered 1,580 points, breaking below the critical 40,000 threshold, while the NASDAQ Composite dropped 3.6% in a single session. The S&P 500 is down sharply as well, extending a multi-day selloff driven by fears of a global trade war spiraling out of control.

Recession Bells Ring Loud

Recession odds are rising rapidly. JP Morgan now pegs the likelihood of a U.S. recession at 60%, citing escalating trade tensions, market volatility, and deteriorating business confidence. The warning comes as investors flee risk assets and corporate earnings forecasts begin to turn south.

Trump’s Tariff Gamble Backfires

President Trump’s decision to impose sweeping new tariffs on Chinese semiconductors, solar components, and electric vehicles was met within hours by China's own round of targeted levies, particularly on American agricultural goods and aviation technology — hitting key Republican strongholds in the Midwest.

Sources within the administration suggest officials were unprepared for the scope of China’s retaliation. Trump has so far defended the tariffs as part of a broader strategy to reassert U.S. economic dominance, but there is growing concern about the long-term damage to both trade and financial stability.

GOP Lawmakers Sound the Alarm

Concern is mounting on Capitol Hill. Republican Senator Ron Johnson (R-WI) acknowledged the turmoil, stating:

"I'm certainly concerned about what's happening right now in the markets, and I hope the administration is looking at it as well."

Other Republican lawmakers, while not yet publicly rebuking the president, are reportedly urging a reassessment of the administration’s strategy before the economic damage deepens further.

Markets Await a Signal

Wall Street is now watching closely for any indication that the White House is willing to come back to the negotiating table. Without it, traders fear that the U.S. economy may be heading toward a deeper downturn fueled by protectionism and geopolitical brinkmanship.

The Federal Reserve has not yet signaled any emergency action, but pressure is mounting. If market losses continue into next week, expectations for a policy response could increase dramatically.

For now, the message from Wall Street is clear: the economic risks of this trade war are real — and rising fast.