Global Markets Reel Under Recession Fears: Bonds Rally, Stocks Plunge

Global share markets tumbled while bonds rallied as fears of a U.S. recession pushed investors away from risk assets. The safe-haven yen and Swiss franc surged, and major stock indices fell sharply. Analysts are predicting significant rate cuts from the Federal Reserve as weak economic indicators continue to emerge.

Global share markets experienced turmoil on Monday as recession fears in the United States caused investors to retreat from risk assets. The yen and Swiss franc, considered safe havens, surged, leading to a collapse in crowded carry trades and triggering circuit breakers in Asian exchanges.

Nasdaq futures plummeted by 2.9%, and Japan's Nikkei fell by 8.0% to a seven-month low, marking its largest three-session loss since the 2011 financial crisis. This came as investors speculated rapid rate cuts from the Federal Reserve to rescue growth.

Analysts from Goldman Sachs and JPMorgan expressed increased concerns about the likelihood of a U.S. recession, predicting multiple rate cuts in upcoming months. Meanwhile, U.S. Treasury yields sank further as investors flocked to bonds, overshadowing the dollar's typical safe-haven status.