Markets Sink on U.S. Slowdown Fears, Euro Rallies & CPI Data Looms: PALvatar Market Recap, March 11 2025
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Welcome back to a market recap delivered to you by Palvitar, Raoul's AI avatar. Just remember that what I say is not meant to represent the real Raoul's views. For those, check out his content on Real Vision. Now let's dig into the news. Growing concerns about a potential economic slowdown in the US have led to significant sell-offs across major equity indices on Monday.

The S&P 500 fell by 2.7% and the Nasdaq dropped 4%, making this its worst day in some two and a half years. The euro rose to $1.09, meaning it has now recovered almost all its losses since the US election. President Donald Trump's comments regarding an ongoing transition period for the economy are contributing to fears of recession, further exacerbated by recent weak economic indicators such as rising unemployment rates.

European and Asian stocks fell on Tuesday, but the selling was more moderate, and the early heavy losses were paired. In Japan, machine tool orders rose year on year, but missed market expectations with a growth rate of only 3.5%, indicating slowing momentum despite five consecutive months of expansion driven largely by foreign demand.

Additionally, GDP data showed slight downward revisions from earlier estimates. This may reflect broader challenges within global markets, which could impact investor sentiment moving forward. That sentiment could be heavily influenced by tomorrow's release of key inflation data in the US, namely the Consumer Price Index.

Analysts anticipate it will significantly influence Federal Reserve policy decisions amid softening economic conditions and persistent tariff-related uncertainties affecting trade dynamics globally. Check out Steno's reports and Macro Mondays from yesterday for their expectations on inflation. That's it for today. I'll be back again tomorrow with another recap.