Watan-The U.S. stock market closed Monday with a sharp decline due to concerns over the impact of President Donald Trump’s policies and tariffs on the economy, marking the worst performance for U.S. stocks in years.
The S&P 500 index partially recovered from its losses but still ended the session down 2.7%, after falling 3% at midday. This marked its largest daily decline since 2022, following its worst week since September.
The Dow Jones Industrial Average lost 890 points (2.1%) by the end of the session, recovering from an earlier drop of 1,100 points. Meanwhile, the Nasdaq Composite Index fell 4.3%.
The S&P 500 has now fluctuated by more than 1% in seven of the past eight trading sessions, reflecting market fears that Trump’s intermittent tariffs could directly harm the economy or create enough uncertainty to freeze business and consumer activity.
The S&P 500 has dropped 8% from its all-time high recorded on February 19. Economic warning signs have already appeared, with surveys showing increasing pessimism among investors and consumers.
According to real-time economic indicators compiled by the Federal Reserve Bank of Atlanta, the U.S. economy may already be contracting.
Market Losses and Trump’s Response
According to Reuters, U.S. stocks have lost $4 trillion in market value since their post-election surge following Trump’s victory.
President Donald Trump told Fox News that the U.S. economy is going through a “transition period” due to his tariff policies, avoiding the term “recession.” He insisted that his plan to restore wealth to Americans would take time and reiterated his goal of bringing manufacturing jobs back to the U.S. through import tariffs.
Meanwhile, Commerce Secretary Howard Lutnick announced in a television interview that the U.S. will impose a 25% tariff on steel and aluminum imports starting Wednesday, describing the economy as undergoing a “detox” to reduce its reliance on government spending as the primary driver of growth.
Tech and Consumer Stocks Take a Hit
- Nvidia shares fell 5.1%, bringing its total losses to over 20% this year despite soaring 820% over the past two years.
- Tesla shares plunged 15.4%, with its total losses for the year reaching 45%. The stock initially surged post-election due to Elon Musk’s close ties with Trump but later suffered as Tesla’s brand became politically entangled.
- United Airlines shares dropped 7.6%, while Carnival Cruise Lines fell 6.3%, reflecting declining consumer confidence.
Bitcoin’s Decline
The sell-off extended beyond stocks. Bitcoin, which had previously seen massive gains, fell below $80,000 per coin—down from $106,000 in December.
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