U.S. stocks suffered a significant drop, with the Dow Jones losing 2.1% and the S&P 500 dropping 2.7%, marking its worst decline of 2025. Wall Street adjusts its outlook as demand for safe assets amid a potential recession drives sovereign bonds in the United States and Europe.
In this grim landscape, President Trump raised alarms by not ruling out the possibility of a recession in the United States this year, attributing short-term economic turmoil to his trade and fiscal agenda. This uncertainty affected investor sentiment, reflected in a 24% increase in the VIX, also known as the "fear index," which reached 29.03 points.
In Argentina, stocks took a hard hit with a 10.5% drop, and the S&P Merval hit lows not seen since November 2024. This scenario is framed within negotiations with the International Monetary Fund to renew a loan that could provide necessary funds for the country's economic stabilization plan.
The fixed income also experienced a significant decline of 3.2%, and the country risk surpassed 700 basis points, reflecting increasing investor concern. On Wall Street, Argentine stocks fell by up to 10.5%, led by companies such as Edenor, Grupo Supervielle, and Banco BBVA.
In the fixed income sector, dollar-denominated bonds closed with widespread declines, notably the Global 2046. Country risk, measured by the JP Morgan index, increased by 31 units, exceeding 700 basis points and reaching 723.
Markets operated under a shadow of renewed fears of a potential recession, attributed to Donald Trump's protectionist measures, causing sharp declines in both local markets and Wall Street. The tech index Nasdaq suffered its biggest daily drop since 2022, and on the New York Stock Exchange, the tech sector plummeted 4%, with companies like Tesla, Nvidia, Alphabet, and Meta recording significant declines.
