WASHINGTON: U.S. stocks plunged on Monday, with the Dow dropping nearly 900 points due to economic uncertainty.
The S&P 500 fell by 2.7%, while the Nasdaq tumbled 4%, marking its worst day since September 2022.
All three major indexes erased gains made since the November presidential election.
The Dow saw an intraday loss of over 1,100 points before recovering slightly at closing.
Market fears grew after Trump refused to rule out a potential U.S. recession.
Recession Concerns
In a Sunday interview, Trump called the economic situation a “transition period” but did not dismiss recession risks.
His comments fueled investor worries, leading to a broad-based selloff across multiple sectors.
Technology stocks were hit the hardest, pulling the Nasdaq into correction territory.
The S&P 500 has now dropped 8.6% from its all-time high recorded on February 19.
Market strategists say investors were already uneasy, and Trump’s remarks added to the instability.
Tech Stocks Crash
The “Magnificent Seven” tech giants—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—all saw sharp declines.
Tech stocks heavily influenced the market drop, dragging major indexes lower.
Tesla suffered the most, plunging 15.4% on Monday, erasing all its post-election gains.
Tesla’s stock is down nearly 45% in 2025 due to declining European sales and CEO controversies.
Elon Musk has faced backlash for his involvement in Trump’s administration, adding pressure on Tesla shares.
White House Response
The White House attempted to ease concerns, calling Trump’s second-term economic plan “historic.”
Officials pointed to past job and investment growth under Trump’s leadership as a positive sign.
The administration argued that tariffs and deregulation would drive economic expansion.
White House spokesperson Kush Desai emphasized the impact of Trump’s policies on long-term investments.
Despite reassurance, markets reacted negatively, fearing instability and economic slowdowns.
Market Outlook
Investors remain cautious as fears of recession and economic uncertainty persist.
Many analysts predict continued volatility in the coming weeks as markets digest Trump’s statements.
Financial experts urge caution amid ongoing concerns about trade policies and interest rates.
With major indexes still under pressure, investors are watching for further government actions.
Uncertainty over Trump’s economic agenda could continue to drive stock market fluctuations.
