Wall Street is in turmoil as concerns rise about the rest of the year following a significant stock market decline. This week marked the worst performance since 2020, with severe losses attributed to the impact of Trump's broad tariffs. The stock market took a hit with the S&P 500 dropping nearly 7% over the past five trading days, and the Nasdaq 100 entering bear market territory for the first time since 2022.

Market experts are commenting on the tariff-induced crash, pointing towards a possible recession looming in the US. John Hussman, from Hussman Investment Trust, stated that recent indicators are signaling an impending economic downturn. JPMorgan also raised the risk of a recession to 60%, noting that disruptive US policies pose a significant threat to the global economic outlook. Analysts suggest that the actions taken by the Trump administration could not only lead to a US recession but also harm the global economy.

In response to economic vulnerabilities, the Federal Reserve might accelerate interest rate cuts beyond market expectations, potentially leading to four to five rate cuts in 2025, according to Jason Pride from Glenmede. The likelihood of sharp rate cuts demonstrates a proactive approach by the Fed in response to current economic challenges without waiting for tangible job market effects resulting from trade policies.