Dow Plunges 900 Points And NASDAQ Composite Plummets by 4 Percent As Recession Fears Rattle Wall Street- wna24

US stocks experienced a significant downturn on Monday, with the Dow Jones Industrial Average dropping by nearly 900 points amid growing concerns over President Trump’s economic policy. The selloff, which also saw the S&P 500 fall by 2.7% and the Nasdaq Composite plummet by 4%, has extended an already difficult month for financial markets.

The widespread market selloff was largely driven by anxiety surrounding the impact of Trump’s tariffs and his economic policies. In an interview on Fox News’ Sunday Morning Futures With Maria Bartiromo, President Trump addressed recession fears, saying,

“I hate to predict things like that. There is a period of transition because what we’re doing is very big.”

While Trump did not explicitly forecast a recession, financial markets have become increasingly pessimistic, with indicators suggesting a recession is more likely now than it was just a few weeks ago.

The tech sector was hit hardest by the downturn, dragging the Nasdaq into correction territory. The “Magnificent Seven” of tech stocks — Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) — all posted losses on Monday. Additionally, the S&P 500 closed down 8.6% from its record high on February 19.

The administration’s stance on tariffs has created uncertainty among investors. White House spokesman Kush Desai defended the Trump economic agenda, stating,

“Since President Trump was elected, industry leaders have responded to President Trump’s America First economic agenda of tariffs, deregulation, and the unleashing of American energy with trillions in investment commitments that will create thousands of new jobs. President Trump delivered historic job, wage, and investment growth in his first term, and is set to do so again in his second term.”

However, this message has not calmed market fears, as the mixed signals have led to a loss of confidence among investors. Just minutes ago, US President Donald Trump announced that he will be doubling his planned tariffs on Canada’s steel and aluminum, to 50 percent. The news tariffs will come into effect from Wednesday. 

“The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear,” President Trump wrote on Truth Social. 

Analysts note that although the stock market often operates independently of the broader economy—especially with the significant influence of megacap tech companies—the current downturn reflects deeper concerns. As Trump’s tariff policies continue to dominate headlines, the markets are increasingly worried that these measures could trigger an avoidable recession.

As the U.S. economy navigates this “period of transition,” investors and policymakers alike will be closely monitoring upcoming economic data and policy decisions to gauge whether the downturn is a temporary setback or the beginning of a more severe economic crisis.