Asian shares experienced significant declines on Monday, following a steep plunge in Wall Street. Concerns arose about a potential harmful combination of escalating inflation and a slowing U.S. economy due to reduced consumer spending amid the ongoing trade tensions.

Thailand's SET index dropped 0.9% after a severe earthquake in Myanmar caused extensive damage in the region, including the collapse of a high-rise building under construction in Bangkok. Major Asian markets such as Tokyo, Hong Kong, Shanghai, South Korea, Australia, and Taiwan also recorded losses.

On Friday, the S&P 500 suffered a 2% decline, marking one of its worst performances in the past two years. The Dow Jones Industrial Average and the Nasdaq composite also saw significant drops.

Investors are worried that the trade tariffs imposed by President Donald Trump may lead to a freeze in consumer and business spending, impacting the economy negatively. Consumer sentiment regarding future financial prospects has deteriorated, raising concerns about job market conditions and inflation levels.

There are speculations that the Federal Reserve might resort to interest rate cuts to stimulate economic growth, although this could potentially lead to upward pressure on inflation.