Wall Street titans are on edge as markets plunged after tariffs

Wall Street bigwigs once believed President Donald Trump would soften his stance on tariffs if markets faltered. But as stocks plunged last week and yesterday, the White House didn’t budge.

The S&P 500 dropped 1.7% on Monday, nearing bear market territory—a 20% decline from recent highs. The Nasdaq and Dow also sank. Even safe-haven assets like gold and the US dollar were sold off.

A brief rally sparked by a false report of a 90-day tariff pause quickly faded when the White House denied it.

Top financial leaders are sounding alarms
BlackRock CEO Larry Fink said most CEOs believe the US is already in a recession. He warned that inflation will stay high, growth will slow, and the Fed may delay expected rate cuts. 

JPMorgan CEO Jamie Dimon warned the trade war could damage global alliances and long-term US economic strength. Goldman Sachs raised the recession risk to 45%.

Hedge fund manager Bill Ackman, once a vocal Trump supporter, warned that collapsing markets weaken the president’s negotiating power. Former Treasury Secretary Larry Summers called the situation unprecedented, noting that presidential actions are now driving market panic.

However, Trump remains defiant, saying that sometimes “you have to take medicine to fix something,” and plans to impose steep new tariffs on April 9.

While over 50 countries have requested trade talks, top officials say meaningful deals could take months. Economists warn of slower growth and rising inflation.