US stock market tumbles as concerns over a potential recession grow
US stock market faces a significant decline as concerns about a potential recession rise.
TroibNews 
US stocks experienced a significant decline on Monday after President Donald Trump indicated he was not ruling out the possibility of a recession this year during an interview with Fox News, relating to his tariff policies.
By the end of the trading day, the Dow Jones Industrial Average fell by 2.08 percent, the S&P 500 decreased by 2.70 percent, and the Nasdaq Composite Index dropped by 4 percent.
Tesla shares plummeted more than 15 percent, while semiconductor firms ASML and Micron Technology both saw declines of over 6 percent. Nvidia also experienced a loss of more than 5 percent.
Market experts cautioned that the current approach of the Trump administration could have significant consequences for investor sentiment.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, expressed to Reuters that Trump’s recent remarks indicated a willingness to accept market declines in pursuit of his policy objectives, marking a notable departure from earlier beliefs that his administration would focus on maintaining stock market stability. He described the situation as "a big wake-up call for Wall Street."
Economic worries were compounded by revised US growth forecasts, as reported by China Central Television.
Morgan Stanley released a report last Friday, adjusting its US economic growth projections for 2025 from 1.9 percent to 1.5 percent, while lowering estimates for 2026 from 1.3 percent to 1.2 percent.
On the same day, Goldman Sachs revised its 2025 US GDP growth forecast down from 2.4 percent to 1.7 percent.
Rich Privorotsky, head of European One Delta Trading at Goldman Sachs, noted that current US policies were significantly affecting consumer confidence and undermining investor trust in equity markets.
He also mentioned the uncertainty surrounding investments in artificial intelligence, especially with China’s increasing influence in the field.
As trade tensions intensified, Canadian provinces began implementing retaliatory measures in response to US tariffs.
British Columbia Premier David Eby announced that all US-made alcoholic beverages would be banned from the province's liquor stores, while Ontario instituted a 25 percent tax increase on electricity exports to the US.
Peter Berezin of BCA Research pointed out the contrasting economic perspectives 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."
Ian Smith for TROIB News
By the end of the trading day, the Dow Jones Industrial Average fell by 2.08 percent, the S&P 500 decreased by 2.70 percent, and the Nasdaq Composite Index dropped by 4 percent.
Tesla shares plummeted more than 15 percent, while semiconductor firms ASML and Micron Technology both saw declines of over 6 percent. Nvidia also experienced a loss of more than 5 percent.
Market experts cautioned that the current approach of the Trump administration could have significant consequences for investor sentiment.
Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky, expressed to Reuters that Trump’s recent remarks indicated a willingness to accept market declines in pursuit of his policy objectives, marking a notable departure from earlier beliefs that his administration would focus on maintaining stock market stability. He described the situation as "a big wake-up call for Wall Street."
Economic worries were compounded by revised US growth forecasts, as reported by China Central Television.
Morgan Stanley released a report last Friday, adjusting its US economic growth projections for 2025 from 1.9 percent to 1.5 percent, while lowering estimates for 2026 from 1.3 percent to 1.2 percent.
On the same day, Goldman Sachs revised its 2025 US GDP growth forecast down from 2.4 percent to 1.7 percent.
Rich Privorotsky, head of European One Delta Trading at Goldman Sachs, noted that current US policies were significantly affecting consumer confidence and undermining investor trust in equity markets.
He also mentioned the uncertainty surrounding investments in artificial intelligence, especially with China’s increasing influence in the field.
As trade tensions intensified, Canadian provinces began implementing retaliatory measures in response to US tariffs.
British Columbia Premier David Eby announced that all US-made alcoholic beverages would be banned from the province's liquor stores, while Ontario instituted a 25 percent tax increase on electricity exports to the US.
Peter Berezin of BCA Research pointed out the contrasting economic perspectives 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."
Ian Smith for TROIB News
