Dow Drops Nearly 900 Points Amid Market Selloff Following Trump’s Comments on Recession Concerns
New York
U.S. stocks took a significant dive on Monday, with the Dow Jones Industrial Average plummeting by nearly 900 points, Bitcoin stumbling, and Wall Street’s fear index reaching its highest point this year. The market turmoil followed President Donald Trump’s remarks about the U.S. economy, which sparked fears of a potential recession and led to a widespread selloff.
The downturn on Wall Street began early, with all three major indexes opening sharply in the red. Despite a brief afternoon rally, the markets closed in the negative, marking a rough day for investors. The Dow finished down by 890 points, or 2.08%, recovering slightly from a drop of more than 1,100 points at its worst. The broader S&P 500 also fell by 2.7%, while the tech-heavy Nasdaq Composite suffered a 4% decline.
This marked the worst trading day of the year for both the Dow and S&P 500, while the Nasdaq recorded its largest single-day drop since September 2022. The ongoing market struggles continued a dismal month for investors, erasing gains made since the U.S. presidential election in November.
The primary driver behind the selloff was anxiety over President Trump’s trade policies, particularly his comments in a recent interview where he suggested that the U.S. economy could face “a period of transition” and refused to rule out the possibility of a recession. This uncertainty, combined with ongoing tariff concerns, unnerved investors and contributed to the market’s decline.
Tech stocks bore the brunt of the losses, with the S&P 500 and Nasdaq dragged lower by significant declines in major tech companies. The “Magnificent Seven” — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — all saw red, with Tesla closing down 15.4%. Tesla’s shares, which had surged post-election, have now dropped nearly 45% this year, erasing gains from November.
The VIX, which measures Wall Street’s fear, surged to its highest level of the year, reflecting widespread investor anxiety. Bitcoin also tumbled to $78,000, its lowest point since November, amid the market’s broader selloff.
Uncertainty surrounding Trump’s tariff policies continues to weigh on markets. While Trump threatened significant tariffs on imports from Canada, Mexico, and China, he also offered temporary reprieves, leaving investors unsure about the future trajectory of U.S. trade policy.
The situation has also led to broader economic concerns, with rising layoffs, slowing hiring, and increasing inflation putting additional pressure on consumer confidence. As a result, investors are closely monitoring upcoming inflation data, which will offer further insight into the health of the economy.
Experts suggest that the market’s current volatility will persist until the uncertainty surrounding global trade and potential recession threats begin to dissipate.
As the week progresses, investors will focus on monthly inflation data due for release on Wednesday and Thursday to better understand the trajectory of the economy moving forward.
- Source. CNN
