Shares of Macquarie Group (MQG.AU) plunged 5.01% in intraday trading on Friday, as global markets reeled from the impact of sweeping tariffs announced by U.S. President Donald Trump. The steep decline in Macquarie's stock price reflects growing concerns about a potential global recession and its implications for the financial services sector.

The selloff in Macquarie's shares comes amid a broader market downturn, with Asian stocks struggling to recover from heavy losses in the previous session. Investors are increasingly worried about the economic fallout from Trump's tariffs, which have been described as the steepest trade barriers imposed by the United States in more than a century.

David Doyle, head of economics at Macquarie Group, highlighted the challenges facing central banks in the current economic climate. "Central banks are not well-equipped to deal with stagflation as the impacts of slower growth and higher inflation pull policy in opposing directions," Doyle stated. This observation underscores the complex economic environment that financial institutions like Macquarie are navigating.

As recession fears mount, investors are ramping up bets on more aggressive interest rate cuts by the Federal Reserve, which could further impact the profitability of financial firms. The uncertainty surrounding global trade and economic growth is likely to continue putting pressure on Macquarie and other financial stocks in the near term.