Trump slams Biden as global markets plummet amid U.S. recession fears

Global stock markets tumbled on Monday as fears of a potential U.S. recession intensified following a weaker-than-expected jobs report. The market turmoil prompted former President Donald Trump to lambast the current administration's economic policies.

Japan's Nikkei 225 experienced its steepest decline since the 1987 Black Monday crash, plummeting more than 12%. European markets also suffered, with Germany's DAX dropping 2.3%, France's CAC falling 1.9%, and London's FTSE 100 hitting a three-month low with a 1.5% decrease, the Daily Wire reports.

U.S. futures markets reflected the global sentiment, with NASDAQ 100 Futures down 4.41%, Dow Jones Futures falling 2.10%, and S&P 500 Futures dropping more than 300%.

The sell-off appears to be a direct response to Friday's U.S. Bureau of Labor Statistics report, which revealed July unemployment rising to 4.3%, the highest since October 2021. The economy added only 114,000 non-farm jobs, significantly below the 185,000 projected by analysts.

Trump took to Truth Social on Sunday night to criticize the Biden administration, writing, "STOCK MARKETS CRASHING. I TOLD YOU SO!!! KAMALA DOESN'T HAVE A CLUE. BIDEN IS SOUND ASLEEP. ALL CAUSED BY INEPT U.S. LEADERSHIP!"

Trump is right. Where is the president? What's Kamala doing? pic.twitter.com/jo6FJOmoPU

— Ian Miles Cheong (@stillgray) August 5, 2024

Financial experts are increasingly concerned about recession indicators. Analysts at Evercore noted, "With the soft employment report, the NASDAQ correction, the plunge in bond yields, and the plunge in commodity prices, it's possible we're seeing recession signals coming home to roost."

Victoria Greene, chief investment officer at G Squared Private Wealth, described the market situation as "painful" to CNBC, citing multiple factors contributing to the downturn.

As the 10-year Treasury yield dropped five basis points, JP Morgan analysts now estimate a 50-50 chance of a recession, underscoring the growing economic uncertainty.