Global markets took a beating on Monday, with investors growing increasingly anxious about an economic downturn. BlackRock CEO Larry Fink said he is hearing concerns from nearly every client, leader, and person about the economy, citing rising uncertainty over President Trump’s tariff policy.
The US stock market slipped immediately after opening, with major indexes falling across the board. The S&P 500 dropped 0.75%, while the Nasdaq Composite fell 1.82%. This was attributed to investors’ fear that impending tariffs could further hurt the economy. Wall Street cut its economic projections and raised the chances of a recession.
The inciting factor for the market’s decline was the looming deadline for President Trump’s tariffs, set to take effect on April 2. Since Trump took office, his back-and-forth tariff policies have created uncertainty among investors, making it difficult to predict what to expect.
Analysts warn that potential tariffs could raise prices and cause a pullback in investment. Companies would need to absorb the costs of higher materials or pass them on to consumers, potentially impacting profit margins.
Despite this, Fink offered a hopeful message, citing the resilience of capital markets over their 400-year history. However, there is still widespread concern about the US economy’s prospects. Goldman Sachs raised its probability of recession from 20% to 35%, while Deutsche Bank estimated a 50/50 chance of a recession.
The Federal Reserve also cut its GDP growth outlook down from 2.1% to 1.7%. Federal Reserve Chair Jerome Powell attributed this downward revision to Trump’s changing policies, further fueling market fears about the impact of tariffs on economic growth.
Source: https://fortune.com/2025/03/31/blackrock-larry-fink-annual-letter-economy-uncertainty-tariffs-recession