BlackRock CEO Larry Fink’s Warning: U.S. Stock Market Could Fall by 20% Due to Tariffs
BlackRock CEO Larry Fink’s Warning – Larry Fink, CEO of BlackRock, warned on Monday that stocks could fall by 20% as the U.S. escalates its trade policies, imposing heavy tariffs on imports. The move, which saw President Donald Trump enact a 10% tariff on all U.S. imports on April 5, has sparked retaliatory measures from Beijing and the European Union. This has raised fears of a global trade war that could severely impact the markets.
Recession Fears Grow Among Executives
During his speech at the Economic Club of New York, Fink shared concerns that a recession could already be underway. “Most CEOs I talk to would say we are probably in a recession right now,” Fink remarked. This sentiment echoes growing worries among top financial figures about the potential for a widespread economic downturn.
Stock Market and Cryptocurrency Face Sharp Declines
In the wake of Trump’s tariff decision, U.S. markets have experienced significant volatility. The S&P 500 and Nasdaq Composite, two major indices, have dropped by 10% in just five days. At the same time, the cryptocurrency market, valued at $2.59 trillion, has lost 7% of its value in the past week, with Bitcoin and Ethereum plunging by 4% and 13%, respectively.
Major Financial Institutions Adjust Economic Forecasts
Amid these turbulent times, leading financial institutions have adjusted their recession probability forecasts. Goldman Sachs has raised its odds of a recession by 10%, now forecasting a 45% chance, while JPMorgan has placed the odds at 60%. Despite this grim outlook, Fink views the market slump as an opportunity for investors. “The turbulence presents more of a buying opportunity than a selling opportunity,” Fink said, though he warned that further declines of 20% are still possible.
Global Economic Landscape Remains Uncertain
The market’s continued instability underscores growing uncertainty surrounding global trade policies and the broader economic future. As the situation develops, both stock and cryptocurrency markets remain vulnerable to further volatility.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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