The global financial market suffered a severe blow on Monday, with losses reaching $9.5 trillion over the course of just three sessions, as investors abandoned all hope that U.S. President Donald Trump would reconsider his tariff policy.

Futures contracts for the S&P 500 indicated a 2% drop today, while the VIX volatility index soared above 50 points. The pan-European Stoxx 600 index fell by 4%, paring earlier losses, while Asia recorded its worst trading session since the 2008 financial crisis. U.S. Treasury bonds and the Japanese yen strengthened, as investors sought safe havens.

The Greek stock market is also in freefall, in sync with the global downturn, plunging to levels that signify a technical correction. Specifically, the General Index has now declined more than 10% from its yearly high (1,750 points), and if it slips further toward a 20% drop, it will officially enter bear market territory.

Investors are increasing their expectations for aggressive rate cuts by the Federal Reserve, pricing in the equivalent of five 0.25 percentage point cuts within 2025. Futures contracts suggest even a 40% probability of an emergency rate cut before the May meeting, as the crisis deepens.

Panic across the globe

“The mood is ‘sell now, ask questions later’,” said Stefan Kemper of BNP Paribas Wealth Management. “The market is searching for the breaking point that will force Trump and/or the Fed to back down.” Panic has spread to every corner of the globe. Tesla plummeted as much as 10% after Wedbush lowered its price target, while Apple, Amazon, and Citigroup each lost around 5%. Germany’s DAX index plunged 10% before recovering, while the Stoxx 600 dropped to its lowest level since December 2023. Even defensive stocks – 2025’s top performers – were massively sold off.

In Asia, the Hang Seng fell by 13%, while South Korea temporarily halted scheduled sell orders. Beijing is considering stabilization measures and an acceleration of fiscal stimulus to stem the decline.

How low can the S&P 500 go?

Wall Street analysts are scrambling to revise their forecasts. John Stoltzfus of Oppenheimer cut his target for the S&P 500 from 7,100 to 5,950 points, warning of “levels of uncertainty that investors are struggling to manage.” His outlook still sees a 17% rebound later this year. More pessimistically, Lori Calvasina of RBC Capital Markets estimated that if a recession is fully priced in, the S&P 500 could tumble to 4,200 points — a 17% drop from Friday’s close.