Global stock markets plunged for a second day after Trump’s sweeping tariffs, with China retaliating by imposing a 34% tariff on all U.S. goods.

Axar.az, citing Reuters, reports that the European STOXX 600 fell 4.4%, marking its worst single-day drop since the COVID-19 pandemic, while Japan’s Nikkei 225 slid 2.8%.

In the U.S., S&P 500 futures dropped 2.7% after the index plummeted 4.8% on Thursday, its biggest decline since 2020, while Nasdaq futures were down 2.8% following a 5.4% drop.

Banking stocks collapsed, with Europe’s STOXX 600 banking index falling 9.5%, Japanese banks dropping 8%, and major Wall Street lenders like Citigroup (-12%) and Bank of America (-11%) seeing steep losses.

Recession fears spiked, with J.P. Morgan raising the probability of a global recession from 40% to 60%. Investors rushed to safe-haven assets, pushing 10-year U.S. Treasury yields down 17 basis points to 3.897%, after a 14 basis point drop the previous day.

Oil prices also suffered, with Brent crude plunging 6% to $65.90 per barrel, the lowest in over three years.

The dollar index initially rose but later fell 1.9%, marking its biggest drop since November 2022. Safe-haven currencies gained, with the Japanese yen rising 0.6% and the Swiss franc up 1%, while the Australian dollar plunged 2.6%. Japanese 10-year bond yields dropped 37 basis points, their biggest weekly fall since 1992, settling at 1.175%.