US stocks plummeted on Monday as investors grew concerned about the impact of President Donald Trump’s tariffs on economic growth. The Dow Jones Industrial Average fell 890.01 points, or 2.08%, while the Nasdaq Composite and S&P 500 slid 4% and 2.69%, respectively.
Trump refused to rule out a full-blown recession for the US economy this year, saying that there will be a “period of transition” as his policies take effect. The president claimed that his policies are bringing wealth back to America, but acknowledged that it takes time.
The recent market volatility is driven by rising trade tensions and signs of slowing US economic growth. Investors are grappling with uncertainty about the new Trump administration’s policies, particularly in trade where back-and-forth on tariff policy has created uncertainty for businesses, consumers, and investors.
Analysts say that concerns about a trade war, geopolitical tensions, and an uncertain economic outlook could be catalysts for a market correction. Richly valued US tech stocks have been hit hard by the recent selloff, with technology stocks being more influenced by risk sentiment.
Trump’s comments on recession fears have added to the market uncertainty, with some experts warning that the narrative around tariffs changes daily, causing damage to markets driven by sentiment rather than fundamental analysis.
Source: https://www.foxbusiness.com/markets/stocks-tumble-recession-fears-trump-tariff-uncertainty