U.S. stocks tumbled on Monday on concerns about the effects of President Donald Trump’s tariffs on economic growth spooked investors.
The Dow Jones Industrial Average fell 961 points, or 2.25%, while the Nasdaq Composite and S&P 500 were down 4.3% and 2.95%, respectively. The tech-heavy Nasdaq is on track for its worst day since September 2022; the S&P 500 is having its worst day since mid-December.
Trump on Sunday declined to explicitly rule out a full-blown recession for the U.S. economy this year, telling Maria Bartiromo in a “Sunday Morning Futures” exclusive interview that the country will see a “period of transition” as his policies take effect.
“I hate to predict things like that,” he said of a recession. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing… it takes a little time, but I think it should be great for us.”
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Financial markets have been volatile in recent weeks as rising trade tensions and signs of slowing U.S. economic growth weighed on consumer confidence and business activity. Investors are grappling with a barrage of new policies from the new Trump administration, particularly in trade where back and forth on tariff policy has increased uncertainty for businesses, consumers and investors.
“The U.S. market sell-off is starting to look ugly,” said Dan Coatsworth, an investment analyst at AJ Bell. “Many people have been worried about elevated valuations among U.S. equities for some time and looking for the catalyst for a market correction. A combination of concerns about a trade war, geopolitical tensions and an uncertain economic outlook could be that catalyst.”
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Richly valued U.S. tech stocks have borne the brunt of the recent selloff on Wall Street.
“The narrative changes on a daily basis around tariffs – that’s what causing all this uncertainty,” said Art Hogan, chief market strategist at B Riley Wealth. “The damage around markets that has everything to do with sentiment is reflected more in the Nasdaq, because technology stocks are certainly more influenced by risk sentiment.”
FOX Business’ Taylor Penley and Reuters contributed to this report.