Markets Continue Sharp Selloff; Recession Warnings Intensify Amid Tariff Escalation

US equity markets opened lower on April 7 as multi-day tariff-driven volatility continued, with the Dow, S&P 500, and Nasdaq each down roughly 9–11% from recent highs following the Liberation Day anniversary tariff escalations. Analysts drew comparisons to the 1987 Black Monday selloff. JPMorgan CEO Jamie Dimon issued a shareholder letter warning of rising recession probability. The Atlanta Fed's GDPNow model flashed a negative reading for Q1 2026, raising stagflation concerns. Trump's social media messaging framing the selloff as intentional added to investor uncertainty, while the administration maintained that tariffs were necessary to correct longstanding trade imbalances.