US Stock Market Takes a Dive Due to Concerns Over Potential Recession
US stock market experiences a significant drop due to concerns over a potential recession.
TroibNews 
US stocks experienced a significant decline on Monday following an interview in which US President Donald Trump did not dismiss the possibility of a recession this year, particularly in light of his tariff policies.
By market close, the Dow Jones Industrial Average had dropped by 2.08 percent, the S&P 500 was down 2.70 percent, and the Nasdaq Composite Index plummeted 4 percent.
Tesla's shares fell more than 15 percent, while semiconductor firms ASML and Micron Technology each saw declines of over 6 percent. Nvidia's stock decreased by more than 5 percent.
Market analysts cautioned that the administration's current approach could adversely affect investor sentiment.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, informed Reuters that Trump's recent remarks indicated a willingness to accept market declines in service of his policy objectives. This represents a notable departure from earlier expectations that the administration would prioritize the stability of the stock market, which he termed "a big wake-up call for Wall Street."
Concerns about the economy were further heightened by downward adjustments to US growth forecasts, as reported by China Central Television.
Morgan Stanley revealed on Friday that it had revised its US economic growth predictions for 2025 down from 1.9 percent to 1.5 percent. Projections for 2026 were also reduced from 1.3 percent to 1.2 percent.
Additionally, Goldman Sachs announced a cut to its 2025 US GDP growth forecast, decreasing it from 2.4 percent to 1.7 percent.
Rich Privorotsky, who leads European One Delta Trading at Goldman Sachs, commented that current US policies are significantly impacting consumer confidence and undermining investor faith in equity markets.
He also referenced the uncertainty surrounding investments in artificial intelligence, especially considering China's increasing dominance in the field.
In the meantime, trade tensions heightened as Canadian provinces initiated retaliatory actions against US tariffs.
British Columbia Premier David Eby announced that US-made alcoholic drinks would be removed from liquor stores in the province, while Ontario responded by implementing a 25 percent tax increase on electricity exports to the US.
Peter Berezin of BCA Research emphasized the contrasting economic mindsets between 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."
Mathilde Moreau contributed to this report for TROIB News
By market close, the Dow Jones Industrial Average had dropped by 2.08 percent, the S&P 500 was down 2.70 percent, and the Nasdaq Composite Index plummeted 4 percent.
Tesla's shares fell more than 15 percent, while semiconductor firms ASML and Micron Technology each saw declines of over 6 percent. Nvidia's stock decreased by more than 5 percent.
Market analysts cautioned that the administration's current approach could adversely affect investor sentiment.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, informed Reuters that Trump's recent remarks indicated a willingness to accept market declines in service of his policy objectives. This represents a notable departure from earlier expectations that the administration would prioritize the stability of the stock market, which he termed "a big wake-up call for Wall Street."
Concerns about the economy were further heightened by downward adjustments to US growth forecasts, as reported by China Central Television.
Morgan Stanley revealed on Friday that it had revised its US economic growth predictions for 2025 down from 1.9 percent to 1.5 percent. Projections for 2026 were also reduced from 1.3 percent to 1.2 percent.
Additionally, Goldman Sachs announced a cut to its 2025 US GDP growth forecast, decreasing it from 2.4 percent to 1.7 percent.
Rich Privorotsky, who leads European One Delta Trading at Goldman Sachs, commented that current US policies are significantly impacting consumer confidence and undermining investor faith in equity markets.
He also referenced the uncertainty surrounding investments in artificial intelligence, especially considering China's increasing dominance in the field.
In the meantime, trade tensions heightened as Canadian provinces initiated retaliatory actions against US tariffs.
British Columbia Premier David Eby announced that US-made alcoholic drinks would be removed from liquor stores in the province, while Ontario responded by implementing a 25 percent tax increase on electricity exports to the US.
Peter Berezin of BCA Research emphasized the contrasting economic mindsets between 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."
Mathilde Moreau contributed to this report for TROIB News
