The CBOE Volatility Index, also known as the ‘fear gauge’, spiked to its highest level in eight months as American stocks tumbled in response to China imposing new tariffs on all goods from the United States. This move further escalated trade tensions following President Trump’s recent tariff pronouncement. The impact was felt across global markets, with European and Asian stock indices experiencing sharp declines. Despite robust hiring figures in the United States, the market volatility fueled concerns about a potential recession.