Global markets tumble as 3-day selloff wipes out $9.5 trillion

In a flash of disregard, US President Trump told reporters to 'forget markets for a second'

- BLOOMBERG

The carnage in financial markets worsened on Monday with stressed-out investors abandoning hopes that US President Donald Trump would change his tariff policy.

Stocks tumbled, taking the three-day wipeout in global equity value to about $9.5 trillion. S&P 500 equity futures signaled a 3 percent loss and the VIX Index spiked above 50. Europe's Stoxx 600 tumbled 5 percent. Asia capped the worst day since 2008. Treasuries and the yen gained as investors sought refuge.

Traders boosted their expectations for Federal Reserve interest rate cuts this year, pricing in the equivalent to five quarter-point moves. Swaps also showed the risk of an emergency move, reflecting a 40 percent chance of a cut by next week, well before the Fed's meeting in May.

Trump told reporters on Air Force One on Sunday to "forget markets for a second" in a flash of disregard for the selloff engulfing Wall Street.