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Al Jazeera
Al Jazeera
Politics

What is a recession, and is it tied to stock market declines?

US President Donald Trump is seen on a screen as currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025 [Ahn Young-joon/AP]

For weeks, stock markets have been falling, and the plunge accelerated after United States President Donald Trump on April 2 unveiled US tariffs on virtually every country.

Commenters on social media have said the drop in stock prices could portend a recession. Professional analysts at JPMorgan have estimated a 60 percent likelihood of a recession, while Goldman Sachs and Morningstar put the odds between 40 and 50 percent.

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