Wall Street faced a rough start to trading week, with key indicators falling as investors responded to President Trump's worrying comments and he refused to rule out the recession.
The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 all recorded significant declines on Monday, with the tech sector leading the recession.
The S&P 500 fell more than 2.5%, continuing its sharp decline last week, with Nasdaq composites falling nearly 4%, extending the recent struggle.
The Dow Jones Industrial Average, NASDAQ Composite and the S&P 500 all recorded significant declines on Monday. AFP via Getty Images
The Dow Jones industrial average also saw a big loss. At 1:45pm Eastern time, it was nearly 800 points, down 1.8%, with volatility persisting amid concerns over economic growth and monetary policy.
Trump and his advisors have recently tried to balance optimism with warnings about short-term economic challenges.
“What we're doing is so big, so there's a transition period,” Trump told Fox News' Sunday on Sunday Morning Futures.
“We're bringing wealth back to America. That's a big deal. …It takes a little time, but I think it should be great for us.”
When asked if he was expecting a recession, Trump declined to make direct predictions.
“I hate predicting such things,” he said, but he admitted, “We're going to be confusing, but that's fine.”
The S&P 500 fell more than 2.5%, continuing its sharp decline last week, with Nasdaq composites falling nearly 4%, extending the recent struggle. Yahoo
His comments suggest negative first quarter growth following slowing labor markets, uncertainty in tariffs and growing concern among economists about early indicators.
Tesla stocks fell over 10% at noon, dragging the wider market.
Gina Volvin, president of Boston-based Volvin Wealth Management Group, said there is a high chance that market volatility will continue.
“This is a headline-driven market. It can change in an hour,” Volvin said, adding that investors should be there for a long time.
“Sit down tight, buckle up. We'll finally make the corrections we've been waiting for, and long-term investors will be rewarded again,” Volvin said.
The rest of the so-called Magnificent Seven stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta) also suffered, falling more than 2.5%.
“What we're doing is so big, so there's a transition period,” Trump told Fox News' Sunday on Sunday Morning Futures. Bloomberg via Getty Images
The sale of these key players contributed to a wider recession as investors reassessed their position in high-growth stocks.
The bond market reflects a similarly cautious tone, with the 10-year U.S. Treasury yields falling to 4.22%, down from 4.31% at the end of Friday.
The turbulence in the market comes in the administration's efforts to prepare Americans for a potential economic slowdown. Authorities claim that it will ultimately lead to stronger growth.
Analysts at major banks adjusted their outlook accordingly.
JPMorgan Chase Economists raised estimates for the recession that took place this year to 40%, up from the beginning of the year's 30%.
“There is a significant risk that the US will fall into a recession this year due to extreme US policies,” wrote a team led by Bruce Kassman.
The market responded negatively to Trump's tariff policies. It wipes out any profits earned during the post-election period. AFP via Getty Images
Goldman Sachs also adjusted its forecasts and increased the probability of a recession to 20%, citing the administration's commitment to policies that could exacerbate the recession.
Meanwhile, Morgan Stanley economists have lowered growth forecasts for 2025 and 2026, raising expectations for inflation.
Despite the market slump, Trump has downplayed the role of Wall Street as a measure of success.
“All I have to do is build a strong country,” he said. “You can't really see the stock market.”
The turmoil in the US market resonated overseas, with European and Asian stocks experiencing volatility.
Dow sinks 700 points, Nasdaq sheds 4% after Trump recession comments
Wall Street faced a rough start to trading week, with key indicators falling as investors responded to President Trump's worrying comments and he refused to rule out the recession.
The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 all recorded significant declines on Monday, with the tech sector leading the recession.
The S&P 500 fell more than 2.5%, continuing its sharp decline last week, with Nasdaq composites falling nearly 4%, extending the recent struggle.
The Dow Jones industrial average also saw a big loss. At 1:45pm Eastern time, it was nearly 800 points, down 1.8%, with volatility persisting amid concerns over economic growth and monetary policy.
Trump and his advisors have recently tried to balance optimism with warnings about short-term economic challenges.
“What we're doing is so big, so there's a transition period,” Trump told Fox News' Sunday on Sunday Morning Futures.
“We're bringing wealth back to America. That's a big deal. …It takes a little time, but I think it should be great for us.”
When asked if he was expecting a recession, Trump declined to make direct predictions.
“I hate predicting such things,” he said, but he admitted, “We're going to be confusing, but that's fine.”
His comments suggest negative first quarter growth following slowing labor markets, uncertainty in tariffs and growing concern among economists about early indicators.
Tesla stocks fell over 10% at noon, dragging the wider market.
Gina Volvin, president of Boston-based Volvin Wealth Management Group, said there is a high chance that market volatility will continue.
“This is a headline-driven market. It can change in an hour,” Volvin said, adding that investors should be there for a long time.
“Sit down tight, buckle up. We'll finally make the corrections we've been waiting for, and long-term investors will be rewarded again,” Volvin said.
The rest of the so-called Magnificent Seven stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta) also suffered, falling more than 2.5%.
The sale of these key players contributed to a wider recession as investors reassessed their position in high-growth stocks.
The bond market reflects a similarly cautious tone, with the 10-year U.S. Treasury yields falling to 4.22%, down from 4.31% at the end of Friday.
The WSJ Dollar Index was hovered near the lowest level Since early November, it has reflected wider uncertainty in the global market.
The turbulence in the market comes in the administration's efforts to prepare Americans for a potential economic slowdown. Authorities claim that it will ultimately lead to stronger growth.
Analysts at major banks adjusted their outlook accordingly.
JPMorgan Chase Economists raised estimates for the recession that took place this year to 40%, up from the beginning of the year's 30%.
“There is a significant risk that the US will fall into a recession this year due to extreme US policies,” wrote a team led by Bruce Kassman.
Goldman Sachs also adjusted its forecasts and increased the probability of a recession to 20%, citing the administration's commitment to policies that could exacerbate the recession.
Meanwhile, Morgan Stanley economists have lowered growth forecasts for 2025 and 2026, raising expectations for inflation.
Despite the market slump, Trump has downplayed the role of Wall Street as a measure of success.
“All I have to do is build a strong country,” he said. “You can't really see the stock market.”
The turmoil in the US market resonated overseas, with European and Asian stocks experiencing volatility.
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