US stock indices slumped on Monday with tech-heavy Nasdaq falling nearly 4% after President Donald Trump’s comments over the weekend stoked fears that a trade war could spark an economic recession.
At 11:05 a.m. ET the Dow Jones Industrial Average fell 323.95 points, or 0.76%, to 42,477.77, the S&P 500 lost 114.16 points, or 1.99%, to 5,656.04, and the Nasdaq Composite lost 665.79 points, or 3.66%, to 17,530.43.
At 09:50 a.m. ET the Dow Jones Industrial Average fell 307.75 points, or 0.72%, to 42,492.47, the S&P 500 lost 74.89 points, or 1.30%, to 5,695.31, and the Nasdaq Composite lost 371.78 points, or 2.03%, to 17,826.75.
Asked over the weekend whether he was expecting a recession in 2025, Trump told Fox News Channel: “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.”
“It takes a little time. It takes a little time,” he added.
On Friday, Federal Reserve Chair Jerome Powell said that the US economy was on a strong footing, but also underscored the need for caution on lowering borrowing costs.
In the bond market, the yield on the 10-year Treasury fell to 4.21% from 4.32% late on Friday.
Gainers and losers
Among megacap stocks, Nvidia fell 2.2%, Meta Platforms and Amazon.com were down more than 3% each.
Elon Musk’s Tesla tanked 7%, its lowest since November 5, after UBS cut its forecast for the automaker’s first quarter deliveries and lowered its price target on the stock.
Among banks, JPMorgan Chase and Goldman Sachs stocks declined more than 3% each.
Crypto stocks edged down tracking lower bitcoin prices. MicroStrategy slid 10%, Coinbase fell 9% and Riot declined 5.2%.
Crude oil
Oil prices slid on signs of economic weakness in the world’s two biggest crude consumers.
West Texas Intermediate fell to trade below $67 a barrel, down more than 15% from its mid-January peak.
