Wall Street’s sell-off deepened Monday, with the S&P 500 dropping 1.4%, the Dow falling 430 points, and the Nasdaq losing 2.1%, as fears over Trump’s tariffs and economic slowdown rattled investors. Goldman Sachs cut its U.S. growth forecast to 1.7% for 2025, warning of a higher recession risk. Tech stocks were hit hardest, with Nvidia down 18.3% YTD and Apple falling 3.2% after delaying an AI update. Bitcoin tumbled to $83,000, while investors fled to U.S. Treasury bonds, pushing 10-year yields down to 4.24%. Global markets also declined, reflecting widespread economic uncertainty.
Stock Market Decline: Quick Looks
- S&P 500 falls 1.4%, Dow drops 430 points, and Nasdaq plunges 2.1%.
- Trump tariffs spark economic fears, with 25% steel and aluminum tariffs set for Wednesday.
- Market volatility continues, with the S&P 500 swinging over 1% in seven of eight days.
- Goldman Sachs lowers U.S. growth forecast to 1.7% for 2025, citing tariff impacts.
- Tech stocks hit hard: Nvidia down 18.3% YTD, Apple drops 3.2% after AI delay.
- Investors shift to safer assets, sending 10-year Treasury yields down to 4.24%.
- Bitcoin slides to $83,000, extending losses from its $106,000 December high.
- European and Asian markets fall, with Hong Kong down 1.8% and Shanghai dipping 0.2%.
Deep Look: Wall Street Sell-Off Deepens Amid Economic Uncertainty
Market Plunge Continues as Economic Concerns Rise
Wall Street extended its steep sell-off Monday, with major indexes suffering sharp losses amid growing fears of economic slowdown and new tariff measures from President Donald Trump.
- The S&P 500 dropped 1.4%, deepening last week’s worst performance since September.
- The Dow Jones Industrial Average fell 430 points (1%), while the Nasdaq plummeted 2.1%.
The market volatility comes as investors grow increasingly concerned about the impact of Trump’s tariffs, which could slow U.S. growth or create economic uncertainty that discourages investment and spending.
The S&P 500 is now down 7.4% from its record high set in February, marking a sharp reversal for the market.
Trump Tariffs and Recession Fears Weigh on Investors
Over the weekend, President Trump addressed economic concerns, telling Fox News:
“There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.”
However, the uncertainty surrounding trade policy is fueling concerns of a potential recession. Commerce Secretary Howard Lutnick confirmed on NBC’s “Meet the Press” that 25% tariffs on steel and aluminum imports will take effect Wednesday, raising further concerns about supply chain disruptions and price increases.
Goldman Sachs Lowers Economic Growth Forecast
As economic uncertainty grows, Goldman Sachs economist David Mericle cut his U.S. growth forecast for 2025 from 2.2% to 1.7%, citing the larger-than-expected impact of tariffs. He also placed the risk of a recession at 20% within the next year.
Tech Stocks and Bitcoin Take a Hit
The sell-off has hit technology stocks particularly hard, wiping out some of their massive gains from 2023 and 2024.
- Nvidia dropped another 2.6%, bringing its year-to-date losses to 18.3%, a stark contrast to its 820% surge over the past two years.
- Apple tumbled 3.2%, following news that its AI-powered Siri upgrade will be delayed until 2026.
The downturn has extended beyond tech, with Bitcoin sinking to $83,000—well below its $106,000 December peak—as investors shift away from speculative assets.
Investors Flock to Treasury Bonds for Safety
With uncertainty mounting, investors are turning to U.S. Treasury bonds, driving their prices up and pushing yields lower.
- The 10-year Treasury yield fell to 4.24%, down from 4.32% on Friday and well below its January high of 4.80%.
Global Markets Also Feeling the Pressure
Stock markets worldwide mirrored Wall Street’s losses, as economic concerns ripple across global economies.
- Hong Kong’s Hang Seng Index fell 1.8%, while Shanghai dipped 0.2% after China reported its first consumer price decline in 13 months.
- European markets opened lower, following a mixed session in Asia.
A Market in Transition
With uncertainty looming, Wall Street faces a critical period. Investors are waiting for further economic data, while corporate earnings and Federal Reserve policy decisions will play a key role in determining the market’s direction.
For now, volatility remains high, and concerns about tariffs, economic slowdown, and recession risks continue to weigh on stocks.
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