Recession worries send US stock market tumbling
US stock market experiences a sharp decline as concerns over a potential recession grow.
TroibNews 
US stocks saw a sharp decline on Monday after President Donald Trump indicated in a Fox News interview that he was not dismissing the potential for a recession this year, especially in light of his tariff strategies.
By the end of the trading day, the Dow Jones Industrial Average had fallen by 2.08 percent, the S&P 500 decreased by 2.70 percent, and the Nasdaq Composite Index plummeted by 4 percent.
Tesla's stock plummeted by over 15 percent, while semiconductor giants ASML and Micron Technology saw drops of more than 6 percent each. Nvidia also suffered a loss exceeding 5 percent.
Market experts cautioned that the Trump administration's current stance could negatively affect investor sentiment on a broader scale.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, commented to Reuters that Trump's recent remarks indicated a readiness to accept market declines in order to achieve his policy aims, which marked a significant departure from the prior belief that his administration would seek to ensure stock market stability. He referred to this shift as "a big wake-up call for Wall Street."
Concerns surrounding the economy were intensified by downward adjustments in US growth forecasts, as reported by China Central Television.
Last Friday, Morgan Stanley revised its US economic growth estimates for 2025 down from 1.9 percent to 1.5 percent, and for 2026, the estimate moved from 1.3 percent to 1.2 percent.
On the same day, Goldman Sachs lowered its own GDP growth forecast for the US in 2025 from 2.4 percent to 1.7 percent.
Rich Privorotsky, head of European One Delta Trading at Goldman Sachs, noted that existing US policies were significantly undermining consumer confidence and eroding investor trust in the equity markets. He also emphasized the uncertainty surrounding investments in artificial intelligence, particularly due to China's expanding role in the industry.
In addition, trade tensions heightened as Canadian provinces began implementing retaliatory actions against US tariffs.
British Columbia Premier David Eby announced that all US-made alcoholic beverages would be removed from the province's liquor stores. In Ontario, a 25 percent tax increase was imposed on electricity exports to the US.
Peter Berezin from BCA Research pointed out the contrasting economic perspectives of the US and Canada, stating on X, "Americans have very little tolerance for any economic pain; whereas Canadians are willing to put up with a lot to repel an unjust attack."
Ian Smith contributed to this report for TROIB News
By the end of the trading day, the Dow Jones Industrial Average had fallen by 2.08 percent, the S&P 500 decreased by 2.70 percent, and the Nasdaq Composite Index plummeted by 4 percent.
Tesla's stock plummeted by over 15 percent, while semiconductor giants ASML and Micron Technology saw drops of more than 6 percent each. Nvidia also suffered a loss exceeding 5 percent.
Market experts cautioned that the Trump administration's current stance could negatively affect investor sentiment on a broader scale.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, commented to Reuters that Trump's recent remarks indicated a readiness to accept market declines in order to achieve his policy aims, which marked a significant departure from the prior belief that his administration would seek to ensure stock market stability. He referred to this shift as "a big wake-up call for Wall Street."
Concerns surrounding the economy were intensified by downward adjustments in US growth forecasts, as reported by China Central Television.
Last Friday, Morgan Stanley revised its US economic growth estimates for 2025 down from 1.9 percent to 1.5 percent, and for 2026, the estimate moved from 1.3 percent to 1.2 percent.
On the same day, Goldman Sachs lowered its own GDP growth forecast for the US in 2025 from 2.4 percent to 1.7 percent.
Rich Privorotsky, head of European One Delta Trading at Goldman Sachs, noted that existing US policies were significantly undermining consumer confidence and eroding investor trust in the equity markets. He also emphasized the uncertainty surrounding investments in artificial intelligence, particularly due to China's expanding role in the industry.
In addition, trade tensions heightened as Canadian provinces began implementing retaliatory actions against US tariffs.
British Columbia Premier David Eby announced that all US-made alcoholic beverages would be removed from the province's liquor stores. In Ontario, a 25 percent tax increase was imposed on electricity exports to the US.
Peter Berezin from BCA Research pointed out the contrasting economic perspectives of the US and Canada, stating on X, "Americans have very little tolerance for any economic pain; whereas Canadians are willing to put up with a lot to repel an unjust attack."
Ian Smith contributed to this report for TROIB News
