US Stocks Plunge on Tariff Uncertainty and Recession Fears

All three major U.S. stock indexes suffered significant losses in Monday’s trading session, driven by investor anxiety over the economic impact of new tariffs and President Donald Trump’s ambiguous stance on the likelihood of a recession.

The Dow Jones Industrial Average dropped 2.1%, while the broader S&P 500 fell 2.7%. The tech-heavy Nasdaq Composite experienced the steepest decline, dropping 4% to record its largest single-day percentage loss since September 2022.

The S&P 500’s drop marked its biggest one-day decline since December 18. The index is now down 8.6% from its all-time high, which was set less than a month ago on February 19.

Market volatility has been fueled by President Trump’s recent trade policy maneuvers. Last week, he imposed new 25% tariffs on exports from Mexico and Canada. Days later, he paused these duties until April 2, creating a climate of uncertainty for investors. This on-again, off-again approach has caused the S&P 500 to swing more than 1% in either direction seven times in just eight days.

Compounding the market jitters was President Trump’s reluctance to dismiss the possibility of an economic downturn. While Commerce Secretary Howard Lutnick stated firmly that there would be "no recession in America," the President offered a more cautious view.

"I hate to predict things like that," Trump told Fox News, describing the current economic climate as a "period of transition." He argued that his administration’s efforts to bring wealth back to America are significant and require time to materialize.

The combination of unpredictable trade policies and mixed signals from the White House has left Wall Street grappling with a gloomy short-term outlook, despite long-term growth projections remaining intact in some sectors.