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11/03/25
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Market Turmoil: Tech Stocks and Crypto Plunge Amid Rising Recession Fears
On March 10, both technology stocks and cryptocurrency markets experienced significant sell-offs as fears of a potential recession in the United States intensified. This mounting concern comes despite efforts by the current administration to reassure investors and stabilize the economic outlook.
JPMorgan has notably increased its estimated likelihood of a recession occurring this year to 40%, a rise from its earlier projection of 30%. Analysts at Goldman Sachs have also adjusted their predictions, now estimating a 20% chance of recession in the next twelve months, an increase from 15%. Their forecasts suggest that if current policies persist, the recession risk could further escalate. Morgan Stanley has echoed these sentiments, downgrading its economic growth forecasts and adjusting inflation expectations upward, predicting GDP growth of only 1.5% for 2025 and a further decline to 1.2% in 2026.
In contrast, a prominent economic adviser to the Trump administration has sought to counter these recession conversations, citing multiple factors that suggest a more optimistic economic trajectory. However, recent stock market trends indicate a different narrative, as key indices fell sharply. The S&P 500 lost 2.7%, reaching its lowest mark since September, while the Nasdaq experienced its most significant downturn since 2022 with a 4% drop. In total, the Dow Jones Industrial Average fell nearly 900 points, or about 2.1%.
Among the major tech companies, the losses have been striking, with the so-called “Magnificent 7” collectively losing over $750 billion in market value in just one day. Tesla led the declines with a staggering 15% drop. Other tech giants, such as Nvidia, Apple, Meta, and Alphabet, followed suit, recording losses between 4% to 5.1%.
In the cryptocurrency space, the total market capitalization plummeted by 7.5%, hitting $2.6 trillion and resulting in approximately $240 billion exiting the market. Bitcoin also faced declines, falling 4% during this tumultuous period before managing a slight recovery up to around $79,000.
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