US markets suffered a sharp pullback on Monday as investment fears deepened over President Donald Trump’s monetary policies, triggering rough losses in stocks and Bitcoin. The decline followed Trump’s unwillingness to rule out the possibility of a recession, disconcerting businesses already on top over his tariff-driven business plan.
All three main share index opened lower and extended their falls throughout the program. The Dow Jones Industrial Average dropped 890 positions after earlier falling over 1, 100 items. The S&, P 500 lost 2.7 %, while the tech-heavy Nasdaq Composite plunged 4 %, marking its worst single-day performance since September 2022.
According to a Reuters report, Trump’s tax laws have rattled owners, wiping out$ 4 trillion from the S&, P 500’s top last month. Tech companies bore the brunt of the downturn, pushing the Nasdaq deeper into adjustment place. The S&, P 500 closed 8.6 % below its February 19 peak. Major tech giants, including Alphabet ( GOOG), Amazon ( AMZN), Apple ( AAPL), Meta ( META ), Microsoft ( MSFT), Nvidia ( NVDA ), and Tesla ( TSLA ), posted losses. Tesla tumbled 15.4 %, extending its year-to-date decline to nearly 45 %, amid falling sales in Europe and backlash over CEO Elon Musk’s ties to the Trump administration.
” The property business is losing its trust in the Trump 2.0 laws”, said Ed Yardeni, President of Yardeni Research. Business planner Anthony Saglimbene of Ameriprise added,” President Trump’s comments never actually taking a crisis off the table disturbed investors who were already unsettled”.
Bitcoin even saw a steep decline, plunging to about$ 78, 000—its lowest levels since November—as investors moved away from high-risk property. Meanwhile, the CBOE Volatility Index (VIX ), often called Wall Street’s “fear gauge”, surged to its highest level of the year.
The White House sought to diminish industry concerns, insisting that Trump’s monetary policies may generate long-term development. White House spokesman Kush Desai said,” Since President Trump was elected, industry officials have responded to President Trump’s America First financial agenda of taxes, deregulation, and the bringing of American power with billion in funding agreements that will create thousands of new work”.
Despite these claims, financial notice symptoms persist. The property market has suffered its worst week since the November vote, and consumer confidence has weakened as inflationary pressures mount. Trump’s recent decision to double tariffs on Chinese imports from 10 % to 20 %, along with a 25 % tariff on steel and aluminum set to take effect on March 12, has heightened concerns. Furthermore, he has threatened a 250 % tax on American dairy items and more taxes on lumber goods.
Amid rising economic uncertainty, owners flocked to safer assets, pushing the yield on the 10-year US Treasury bond down to 4.225 %. Industry analysts are now focused on important inflation data set for launch later this week to evaluate whether cost pressures remain consistent.
A crisis is generally defined as two consecutive quarters of negative GDP development. The previous US crisis occurred in early 2020 during the Covid-19 crisis, which led to widespread work losses and economic downturn.
Trump refuses to act out crisis, says market in’ change’ amid market turmoil
Trump on Sunday declined to provide a clear answer on whether the country is headed for a recession, instead offering a vague response. ” I hate to predict things like that”, he said in an interview on Fox News ‘ Sunday Morning Futures With Maria Bartiromo when asked about the possibility of an economic downturn in 2025. ” There is a period of transition, because what we’re doing is very big—we’re bringing wealth back to America”, he said. ” It takes a little time”.
Trump’s commerce secretary, Howard Lutnick, was more direct in dismissing concerns. ” Absolutely not”, he told NBC when asked whether Americans should brace for an economic downturn.
However, economic challenges continue to mount. The stock market just wrapped up its worst week since the November election, and consumer sentiment has declined as shoppers worry about rising prices driven by Trump’s shifting tariffs on Canada, Mexico, and China.
Adding to uncertainty, mass layoffs persist across several government agencies, with billionaire advisor Elon Musk overseeing widespread job cuts. When reporters pressed Trump again about the possibility of a recession aboard Air Force One, he responded with a noncommittal remark:” Who knows”?
Economic indicators raise alarms
The Atlanta Federal Reserve now predicts a 2.4 % contraction in GDP growth for the first quarter of 2025, which would be the worst performance since the Covid-19 pandemic.
Kevin Hassett, Trump’s chief economic advisor, suggested on ABC that tariffs might become permanent. He explained that their duration depends on how the targeted countries respond. If they fail to meet US demands, the tariffs could remain in place as part of a new economic equilibrium, he said.
In his State of the Union speech, Trump told Americans to expect” a little disturbance” as tariffs take effect. ” We’re okay with that. It won’t be much”, he insisted.
However, economic experts remain cautious. Goldman Sachs raised its estimate of a US recession in the next 12 months from 15 % to 20 %. Morgan Stanley also predicted weaker growth than expected.
A recession is typically defined as two consecutive quarters of negative GDP growth. The last US recession occurred in early 2020 during the Covid-19 crisis, when millions lost jobs.
( Inputs from Reuters and ANI )
