US stocks look to rebound after major market sell-off

US stocks were high in pre-market trading on Tuesday after fearing the recession had repeated markets in the last session.

The Dow Jones industrial average rose 50 points (0.14%), while the Nasdaq Composite and the S&P 500 rose 0.26% and 0.2% respectively.

Key indicators fell on Monday, raising concerns about the impact of President Donald Trump's tariffs on economic growth that sucks investors into. The Dow slid 890.01 points (2.08%), while the Nasdaq Composite and S&P 500 slide 4% and 2.69%, respectively. The Dow and S&P 500 saw their worst day since December 18th. The technology-rich Nasdaq was its worst day since September 2022.

Stocks have fallen into the fear of a recession, and Trump's tariff uncertainty

On Sunday, Trump refused to explicitly rule out a full-scale recession in the US economy this year, and Maria Bartilomo said in a “Sunday Morning Futures” exclusive interview that he would see a “transition period” as his policies take effect.

“I hate predicting such things,” he said of the recession. “What we're doing is so big, so there's a transition period. We're bringing wealth back to America. That's a big thing… It takes a little time, but I think it should be great for us.”

Financial markets are becoming unstable as signs of rising trade tensions and slowing US economic growth have been heavy on consumer trust and business activities. Investors are working on a barrage of new policies, especially from the new Trump administration in trade. In particular, the back and forth between tariff policies has increased uncertainty among businesses, consumers and investors.

Trump says he will go through a “transition period” when asked if the economy can see a recession this year

“Many people have been worried about a rise in valuation among US stocks for a while and are looking for a catalyst for market correction,” said Dan Courtworth, an investment analyst at AJ Bell, on Monday. “The combination of trade wars, geopolitical tensions and concerns about uncertain economic outlooks could be the catalyst for that.”

Tech's shares, particularly Tesla's stock fell over more than 15% on Monday, as its recent sale on Wall Street.

Tesla stocks have fallen 41.4% so far, including a decline of more than 36.6% over the past month. Since reaching its largest market capitalization in history on December 17th, Tesla has fallen more than half from its new market capitalization of $69.6 billion as of March 10th.

Tesla shares slides amid market sale on recession concerns, tariff uncertainty

UBS cut its first quarter delivery forecast. This contributed to the sale, along with widespread concerns from the US economy over the recession and the growing trade war that comes with Trump's tariff threat.

The electric car maker's shares rose 1.5% in pre-market trading on Tuesday.

“The story changes daily about tariffs, which creates all this uncertainty,” said Art Hogan, chief market strategist at B Riley Wealth, on Monday. “Tech stocks are certainly affected by risk sentiment, so the damage in the markets that have a connection to sentiment is reflected more on Nasdaq.”

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Shares in the other epic stocks of Apple, Microsoft, Alphabet, Amazon, Nvidia and Meta platforms fell between 2.4% and 5.1% on Monday.

Taylor Penley, Eric Revell and Reuters of Fox Business contributed to this report.