US stock futures pared some losses in premarket trading. Nasdaq futures slid 1.68%, rebounding from a 6% decline; Dow futures shrank losses to 1.76%; S&P 500 futures sank 1.55%.

Big techs also trimmed some losses. Tesla slid 1.96% now after an initial decline of 10%; Nvidia, Microsoft down less than 1%.

Traders boosted expectations for the Federal Reserve to cut interest rates this year — and raised the specter of a reduction before the central bank’s next meeting — as the US administration’s tariffs ignite fears of a global recession.

Markets priced 125 basis points of easing by year end, equivalent to five quarter-point moves, overnight interest-rate swaps showed. While that move later pared, the uptick has been sharp; as of last week, just three reductions were fully priced. Swaps also show a chance of about 40% that the central bank lowers its benchmark rate 25 basis points by next week, well before the Fed’s next scheduled policy decision on May 7.

The rapid repricing reflects the fear sweeping global markets, with US President Donald Trump showing little appetite to back down on aggressive trade tariffs announced last week. He told reporters on Sunday evening to “forget markets for a second.”