The trader works on the floor of the New York Stock Exchange on March 10, 2025 at Opening Bell.
Charlie Tribrorow | AFP | Getty Images
Stocks fell on Monday as sales pressure continued to drag Wall Street last week. Investors worried about the economy slowing after President Donald Trump failed to rule out a recession in which US tariffs are in place.
Dow Jones Industrial Average It dropped 491 points, or 1.2%. S&P 500 2.1% is poured, Nasdaq Composite Lost 3.4%. Both the 500-stock S&P and Tech Heavy Nasdaq have fallen to their lowest levels since September 2024.
The Nasdaq was overwhelmed by a decline in the “magnificent Seven” cohort. Tesla Drop 8% alphabet 4% dropped Meta And ai darling nvidia Lost 5%.
Stocks are under pressure as investors fret potential recession due to tariffs implemented by the Trump administration. Part of the concern is that these taxes could raise prices, making it difficult for the Federal Reserve to lower rates. In an interview that aired Sunday, Trump answered a Fox News question about possible recession, saying the economy is experiencing a “period of transition.”
“We're in the pain of manufactured corrections. They say it was manufactured because it was actually based on the new administration's tariff program, or at least the tariff threats and how it affects the economy. “Now we're experiencing a typical pullback and will probably experience minor corrections before everything is complete. This would actually be good for resetting the dials in this ongoing bull market.”
Last week, the S&P 500 lost 3.1% on its worst weekly mark since September. The Dow fell 2.4%, while the Nasdaq fell 3.5%. Over the past month, the S&P 500 and NASDAQ have fallen by 6% and 9% respectively, while the Dow has fallen by 4.5%.
Turbulence could continue this week, with a large amount of economic data added to the list of potential market mobility events. In terms of inflation, the February Consumer Price Index (CPI) is scheduled for Wednesday, followed by the Producer Price Index (PPI) on Thursday. Stovall said he was optimistic towards both of these measurements.
“What really encourages investors is that the streets and our economists predict better reads in both headlines and core CPIs, which look similar to PPIs. The inflation situation will cool down and will come a long way to calm investors' nerves,” he said. “The market is approaching the level of being sold right now, so is the good news at least likely to trigger counter-trend rally? I think it's short-term. Then we'll decline?
