By John Meyer, consultant in financial affairs – Eurasia Business News, March 10, 2025. Article No 1445. UPDATED
The Dow Jones Industrial Average dropped 1,037 points, or 2.4% for its biggest decline of the year. The S&P 500 shed 2.8%, and the Nasdaq Composite lost 4.3%. Both the 500-stock S&P and tech-heavy Nasdaq dropped to their lowest levels since September 2024, as Trump did not rule out recession in 2025.
The S&P 500 is off by 9.1% from its all-time high reached Feb. 19, the Nasdaq Composite is off by 14% from its recent high.
The Nasdaq was weighed down by declines in the “Magnificent Seven” cohort. Tesla tumbled 13%, while Alphabet, Meta and AI darling Nvidia lost around 5%.
Stocks have been under pressure as investors fret over a possible recession due to tariffs implemented by the Trump administration.
President Donald Trump and other senior White House officials have spent the past several days bracing Americans for a potential economic slowdown that they say will then lead to stronger growth ahead. President Trump that his sweeping economic agenda could cause short-term turbulence that he believed would drive future prosperity.
Key Economic Challenges
Tariff Impact: The ongoing use of tariffs by the Trump administration has raised concerns among consumers and businesses. Tariffs could lead to higher prices for everyday goods and create uncertainty in trade relationships, particularly with major partners like Canada and Mexico but also with European Union.
Labor Market Slowdown: The labor market has shown signs of slowing down, with job growth easing since December. Employers added fewer jobs than expected in February, and hiring intentions are weakening.
Negative GDP Growth Indicators: Early data for the first quarter suggests that GDP might contract, with the Atlanta Fed’s GDPNow tracker indicating a potential decline of 1.5%. This aligns with other metrics pointing to decelerating growth.
Read also : Gold : Build Your Wealth and Freedom
Goldman Sachs economists increased their recession forecast Friday, calling for 20% odds of a significant downturn over the next 12 months, up from 15%, citing Trump trade policies. Amid those risks, gold price should cross $ 3,000 in 2025.
A rare convergence of gold demand from both Eastern and Western economies is fueling a significant rally in the precious metal.
According to data from the World Gold Council, 72.2 tonnes of gold—valued at $6.8 billion—flowed into North American ETFs in February, the largest single-month inflow for the region since July 2020 and the strongest February on record.
This was the largest single month inflow for the region since July 2020 and the strongest February ever. As physical shipments into COMEX vaults from London and other markets made headlines, the positive gold market momentum also benefited North American gold ETFs.
On March 7, Morgan Stanley lowered its Q4/Q4 2025 growth forecast to 1.5% from 1.9% earlier. It also lowered its 2026 growth forecast to 1.2% from 1.3%.
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© Copyright 2025 – Eurasia Business News. Article no. 1445.
Eurasia Business News 