Asian markets will rise as the fear of a recession weighs on European and US stocks

• Jerome Powell, Chairman of the US Federal Reserve I said On Wednesday, President Trump’s trade tariffs could lead to “inflation and slow growth,” with US stocks falling in the news. Analysts keep saying the word “recession.” However, the Asian market performed buoyantly this morning. The European index was softer with early trading. US futures were heading up before the opening.

S&P 500 I lost 2.2% yesterday. Dow Losing 1.7%, with high-tech Nasdaq A 3.1% decrease. Chip Maker nvidia and Advanced Micro Devices Both fell 7% on news that the former would be banned from exporting chips to China.

The decline comes after the S&P experienced a “Death Cross” on Monday. There, the 50-day moving average fell below the 100-day moving average. It is a (unreliable) technical indicator of more declines.

In contrast, Asian markets were on the rise for the majority today, as investors considered whether they considered President Trump may underestimate their advantages In a trade war.

Here’s a snapshot of today’s action:

• futures The S&P rose 1% this morning, opening in advance.
• IndiaThe Nifty 50 rose 1.4%.
• Japan‘s Nikkei 225 rose 1.35%.
• China‘s SSE Composite rose slightly at 0.13%.
• Stoxx Europe 600 and UK FTSE100 Both lost half points in early trading.

US stocks are being curtailed by the fear of a recession.

“Fed Chairman Jerome Powell’s Secretariat’s stance on prioritizing inflation has shattered expectations for short-term interest cuts,” said George Bessey, the trading platform’s lead FX and macro strategist, in a memo to clients this morning.

“Indeed, the possibility of a recession climbs further due to the pushback on the timing of the cuts. This explains why all three major US stock indices fell on Wednesday.”

Paul Donovan of UBS agreed in a morning note.

Goldman Sachs Joseph Briggs and the team say the chances of a recession in the US are currently around 65%.

“Given the critical trade policy uncertainty, the outlook remains very fluid and we see a low bar to return to the baseline of the recession,” they told clients. luck. “Together we’ll see three 25bp ‘insurance cuts’ from the Fed to protect against loose growth and labour market softening. ”

This story was originally introduced Fortune.com