BlackRock CEO Larry Fink said Monday stocks could fall 20% as the U.S. begins imposing aggressive tariffs on its trading partners, plunging markets into bearish territory.
U.S. President Donald Trump imposed 10% tariffs on all U.S. imports on April 5, sparking retaliatory measures from Beijing and the European Union and igniting fears of a global trade war.
Speaking at the Economic Club of New York on Monday, Fink shared that many of his fellow executives believe the market meltdown is a sign the U.S. is in the midst of an economic recession, Reuters reported.
“Most CEOs I talk to would say we are probably in a recession right now,” Fink said.
The executive’s comments come as investors panic over a market meltdown triggered by President Trump’s economic policy, which relies heavily on tariffs that many analysts believe will trigger a global recession. On Monday, Trump reiterated his commitment to these punitive measures, telling his X followers to be “strong…and patient.”
The S&P 500 and Nasdaq Composite— two widely watched indices that measure the health of the U.S. stock market—have cratered 10% over the past five days.
Similarly, the cryptocurrency market, worth $2.59 trillion as of publication time, has lost 7% of its market value in the past week, according to CoinGecko data. Bitcoin and Ethereum, the two largest cryptos by market value, have plunged 4% and 13% over the same period, respectively. Meanwhile, major altcoins such as Solana and XRP are trading down 14% and 7%, respectively, over the past seven days.
As stocks have slid, several major financial institutions ratcheted back their economic forecasts. Goldman Sachs upped its recession odds forecast by 10 percentage points to 45%, while JPMorgan put those odds at 60%, according to Reuters.
Despite those bearish numbers, Fink told investors the market turbulence presented “more of a buying opportunity than a selling opportunity,” adding that the carnage did not pose systemic risks.
Still, “that doesn’t mean we can’t fall another 20% from here too,” Fink said.
Edited by James Rubin
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
