US stocks plunge on recession fears, Nasdaq sees worst day since 2022
A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid
NEW YORK: Wall Street stocks plummeted Monday (Mar 10) as investors fretted that uncertainty over President Donald Trump's tariff policy could tip the world's biggest economy into a recession.
The moves came after Trump refused to rule out the possibility of a 2025 recession, saying there would be "a period of transition because what we're doing is very big - we're bringing wealth back to America".
Tech stocks led the slump, with the tech-focused Nasdaq Composite Index marking its largest one-day loss since 2022.
The Nasdaq plunged by 4.0 per cent, bringing it to 17,468.32.
The broad-based S&P 500 Index retreated 2.7 per cent to 5,614.56 and the Dow Jones Industrial Average slid 2.1 per cent to 41,911.71.
Major tech names saw sharp losses, with Tesla shares diving 15.4 per cent.
Others among the so-called Magnificent Seven stocks - which include Google parent Alphabet, Amazon, Meta and Nvidia - also sank.
The moves came after Trump refused to rule out the possibility of a 2025 recession, saying there would be "a period of transition because what we're doing is very big - we're bringing wealth back to America".
Tech stocks led the slump, with the tech-focused Nasdaq Composite Index marking its largest one-day loss since 2022.
The Nasdaq plunged by 4.0 per cent, bringing it to 17,468.32.
The broad-based S&P 500 Index retreated 2.7 per cent to 5,614.56 and the Dow Jones Industrial Average slid 2.1 per cent to 41,911.71.
Major tech names saw sharp losses, with Tesla shares diving 15.4 per cent.
Others among the so-called Magnificent Seven stocks - which include Google parent Alphabet, Amazon, Meta and Nvidia - also sank.
While markets were previously bolstered by hopes of tax cuts and lighter regulation, Steve Sosnick of Interactive Brokers noted that sentiment has been bogged down by more immediate worries over tariffs.
Since taking office in January, Trump has imposed sweeping tariffs on imports from Canada, Mexico and China - even as he backed off some of the levies on his country's immediate neighbours.
A new wave of tariffs threatens to hit this week, with steep levies of 25 per cent on steel and aluminium due to take effect Wednesday.
"Ongoing confusion about tariffs and concerns that maybe the DOGE cuts are excessive led to a drop in consumer sentiment, and are now leading to fears of a slowdown or higher inflation or both," Sosnick said.
He was referring to sweeping cuts to the federal government overseen by Trump's billionaire advisor Elon Musk and his so-called Department of Government Efficiency (DOGE).
Since taking office in January, Trump has imposed sweeping tariffs on imports from Canada, Mexico and China - even as he backed off some of the levies on his country's immediate neighbours.
A new wave of tariffs threatens to hit this week, with steep levies of 25 per cent on steel and aluminium due to take effect Wednesday.
"Ongoing confusion about tariffs and concerns that maybe the DOGE cuts are excessive led to a drop in consumer sentiment, and are now leading to fears of a slowdown or higher inflation or both," Sosnick said.
He was referring to sweeping cuts to the federal government overseen by Trump's billionaire advisor Elon Musk and his so-called Department of Government Efficiency (DOGE).
Source: AFP/fs
