Crypto collapse in U.S. stocks: JPMorgan Chase and Goldman Sachs analysts raise recession risk to 40%

Fears of a recession in the United States intensified, leading to a sharp drop in the US stock and cryptocurrency markets on March 10. Even as the White House tries to ease market fears, a number of Wall Street investment banks and asset management giants have raised their recession forecasts to 20% to 40% from 15% to 30% at the beginning of this year, indicating a serious setback in investor confidence.

( a precursor to a market crash? Jamie Dimon dumped JPMorgan stock and Buffett hoarded hundreds of billions of dollars in cash )

Traditional financial giants: Increased risk of recession

The Wall Street Journal (WSJ) reported that JPMorgan (JPMorgan) economists have raised the probability of a recession in the United States in 2025 to 40% from 30% at the beginning of the year. The bank's analysts believe that due to the current policy of the United States is too extreme, the downside risks to the economy have increased significantly.

At the same time, economists at Goldman Sachs (Goldman Sachs) also raised the probability of a recession in the United States within 12 months, from 15% to 20%:

If the Trump administration sticks to its policies even in the face of worsening economic data, the chances of a recession could rise further.

( the Trump administration deliberately let the stock market crash? The bold speculation of well-known investor Anthony Pompliano )

In addition, economists (Morgan Stanley) Morgan Stanley lowered their economic growth forecasts last week and raised their inflation forecasts; U.S. GDP growth is expected to be only 1.5% in 2025 and slow further to 1.2% in 2026.

Earlier, the Atlanta Federal Reserve's GDPNow model also took the lead in sharply lowering the US GDP forecast for the first quarter of 2025, from 3.9% growth to -2.4% contraction, triggering recession fears.

( US economic outlook looms: Q1 GDP forecast revised down to -2.8% amid recession fears )

The White House is trying to reassure the market: just a transitional phase

Despite deepening market concerns, U.S. President Donald Trump's economic adviser Kevin Hassett tried to temper recession fears in a March 10 interview with CNBC:

There are still many reasons for optimism in the U.S. economy, and current fluctuations in economic data are only "short-term twists and turns."

In an interview with Fox News on March 9, Trump said that "the U.S. economy is going through a transition period," indirectly responding to market fears of recession.

Technology stocks tumbled

In recent days, the US stock market has suffered a major sell-off, and many technology stocks have tumbled, seemingly announcing that the "Trump market (Trump Bump)" effect has faded, and the S&P 500 index is now below the level before the November 5 election last year.

Just yesterday, the S&P 500 index fell 2.7%, the lowest since last September; The tech-heavy Nasdaq (Nasdaq) index plunged 4%, its worst one-day performance since 2022; The Dow Jones Industrial Average (Dow Jones Industrial Average) tumbled nearly 900 points, or 2.1%.

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Meanwhile, the market capitalization of Magnificent 7, the seven largest U.S. tech giants, lost more than $750 billion in a single day. Among them, Tesla (Tesla) plunged 15%, becoming the worst performing stock in the S&P 500 this year. Huida (Nvidia) fell 5.1%, Apple (Apple) fell 4.9%, Meta fell 4.4%, and Alphabet fell 4.5%.

The crypto market is also doomed

Undoubtedly, the crypto market also suffered a sharp sell-off, with the total market capitalization falling by 7.5% on March 11 to $2.6 trillion, with about $240 billion flowing out of the market. The price of Bitcoin (BTC) fell below $77,000 at its lowest, down about 4% on the day.

Gold bull Peter Schiff also ridiculed Trump's bitcoin reserves, saying that the high volatility of the asset's value does not show the legitimacy and rationality of the government's use.

( holds over 60,000 BTC! The UK stated that it will not follow the strategic bitcoin reserves of the United States: too volatile )

This article Crypto Double Crash in US Stocks: JPMorgan Chase and Goldman Sachs Analysts Raise Recession Risk to 40% First appeared in Chain News ABMedia.