Financial markets took a sharp downturn on March 10, with crypto and tech stocks seeing significant losses as recession fears intensified. JPMorgan economists raised their US recession probability to 40%, up from 30% at the start of 2025, citing economic policy risks.
“We see a material risk that the U.S. falls into recession this year owing to extreme U.S. policies,” JPMorgan analysts wrote, according to The Wall Street Journal.
Their assessment was echoed by Goldman Sachs, which increased its 12-month recession forecast from 15% to 20%, warning that the risk could rise further if the Trump administration maintains its current economic policies despite worsening economic data.
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Morgan Stanley Lowers U.S. GDP Forecast to 1.5% for 2025, Warns of Rising Inflation
Adding to the concerns, Morgan Stanley revised its economic growth outlook downward, forecasting U.S. GDP growth of just 1.5% in 2025, declining further to 1.2% in 2026. The firm also raised its inflation expectations, signaling prolonged financial uncertainty.
Despite these warnings, the Trump administration has downplayed concerns. Kevin Hassett, the National Economic Council head, insisted that the U.S. economy remains strong.
Speaking to CNBC on March 10, Hassett acknowledged short-term economic “blips” but argued there were still plenty of reasons to be optimistic.
In a March 9 Fox News interview, President Donald Trump described the economic slowdown as a “period of transition”, dismissing concerns of a full-blown recession.
Investor sentiment has turned sharply negative in recent weeks, with what was once called the “Trump bump” now fully erased. The S&P 500 has fallen below its pre-election levels, losing nearly 10% from last month’s peak. The Nasdaq is already in correction territory, having dropped 14% in just three weeks.
https://twitter.com/Polymarket/status/1899154423764418622
On March 10, all major U.S. stock indices closed in the red. The S&P 500 dropped 2.7%, hitting its lowest level since September. The tech-heavy Nasdaq plunged 4%, marking its worst single-day decline since 2022, while the Dow Jones Industrial Average fell nearly 900 points (2.1%).
The Magnificent 7—America’s top tech firms—lost a staggering $750 billion in market value in a single day. Tesla was the hardest hit, tanking 15%, making it the worst-performing stock in the S&P 500 this year. Nvidia fell 5.1%, Apple dropped 4.9%, Meta lost 4.4%, and Alphabet slid 4.5%.
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Crypto Markets Plunge Amid Economic Uncertainty
The crypto market also experienced a steep decline, reaching its lowest point since early November. On March 11, total crypto market capitalization dropped by 7.5% to $2.6 trillion, with $240 billion exiting the space.
Bitcoin (BTC) fell through key support levels, dropping 4% on the day and briefly touching $76,784 before recovering to $79,000 at the time of writing.
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Key Takeaways
- JPMorgan raised the U.S. recession probability to 40%, while Morgan Stanley lowered GDP growth forecasts and warned of rising inflation.
- U.S. stock markets plunged on March 10, with the S&P 500, Nasdaq, and Dow Jones suffering steep losses, erasing the “Trump bump.”
- Crypto markets tumbled alongside equities, with Bitcoin briefly falling below $77,000 and the total market cap dropping by $240 billion.
The post Crypto And Tech Stocks Tumble As JPMorgan Raises US Recession Odds to 40% appeared first on 99Bitcoins.