Stocks Spiral as Trade Tensions Soar

Global stock markets plunged after China retaliated against U.S. tariffs, intensifying fears of a recession sparked by the trade war. The Nasdaq declared a bear market while the Dow corrected. J.P. Morgan sees a 60% chance of a recession, amid concerns from economists and political figures.

Global stock markets suffered significant losses on Friday following China's announcement of increased tariffs on U.S. goods, a move countering President Trump's previous actions. This escalation further stoked investor fears of a looming recession, reminiscent of the pandemic-era declines.

The tech-heavy Nasdaq Composite fell into bear market territory amid the global trade tensions. The Dow Jones Industrial Average also confirmed a correction. Meanwhile, in a strategic move, China announced new controls on rare earth exports, deepening the conflict and impacting markets globally.

J.P. Morgan raised its recession forecast to 60% by year-end. In response, U.S. Senator Ted Cruz expressed concerns about the economic implications of ongoing tariffs, warning of potential adverse effects on both the economy and political landscape.

(With inputs from agencies.)