Major U.S. stock indexes fell after President Donald Trump's comments over the weekend heightened fears of an economic downturn due to trade disputes, Reuters reported.
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Trump's statement
Trump declined to predict a U.S. recession in an interview on Sunday, raising concerns among investors that his erratic policies toward China, Mexico and Canada could dampen consumer demand and corporate investment.
Meanwhile, China is imposing tariffs on some U.S. goods on Monday, and new U.S. tariffs on certain metals will take effect later this week.
Reuters poll shows 91% of economists see increased risk of recession as a result of Trump's changing trade policy
Market reaction
Overall, the Nasdaq and S&P 500 indices fell to their lowest levels in five months. As of 16:50 Kyiv time:
- The Dow Jones Industrial Average fell 307.75 points (-0.72%) to 42,492.47. The S&P 500 lost 74.89 points (-1.30%) to 5,695.31. The Nasdaq Composite fell 371.78 points (-2.03%) to 17,826.75.
Tech stocks were the hardest hit, with Nvidia down 2.2%, while Meta and Amazon each lost more than 3%.
Tesla shares fell 7%, hitting their lowest since Nov. 5, after UBS analysts cut their first-quarter electric vehicle delivery forecast and slashed their price target for the company's shares.
Details
The technology sector lost 2.6%, leading the decline among the S&P 500 sector indexes. The Russell 2000 small-company index fell 1%.
The banking sector also suffered, with shares of JPMorgan Chase and Goldman Sachs falling more than 3%, dragging down the S&P 500 Banks index.
Last week, the S&P 500 posted its biggest weekly drop since September. On Monday, the Nasdaq lost more than 10% of its December peak, indicating it was entering a correction phase.
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