Global Market Meltdown Swings to ‘Madness’

The market chaos unleashed by Donald Trump’s trade war continued for a third day as stocks, bonds and commodities all swung wildly, buffeted by both fears of a recession and speculation the financial damage will drive the Republican president to change course. After the darkening global outlook hammered markets in Asia and Europe, extending a slide that erased roughly $10 trillion from equity markets worldwide, the S&P 500 opened sharply lower, only to briefly spike as rumors raced across trading floors that Trump was poised to delay his tariffs.

But prices sank again as those hopes faded—and by late morning Trump was making more threats as China ramps up its retaliatory tariffs. One senior floor trader’s assessment of today’s whipsaw? “This is madness.” Volatility convulsed other markets as well, with traders continuing to price in a high risk of a global downturn. The VIX Index—known as the fear gauge—spiked to pandemic-era levels. Treasuries weren’t much of a haven either: yields on longer-dated bonds surged, underscoring the risk that tariffs could sink the US economy and worsen the federal government’s finances. At the end of the day, markets closed down, but not as dramatically as they did last week. Still, the S&P 500 remains at levels not seen since May 2024. Here’s your markets wrap.