Dow Tanks 1,300 Points And S&P 500 Enters Bear Market As Recession Fears Accelerate

 

Traders work on the floor of the New York Stock Exchange on Friday.

Stocks globally plummeted again Monday as President Donald Trump dug in on his tariffs, which many economists predict will quickly send the global economy into a recession.

Key Facts

U.S. stocks sank even further Monday after historically bad Thursday and Friday trading which wiped out trillions of dollars in equity.

The Dow Jones Industrial Average fell 1,320 points, or 3.4%, shortly after markets opened at 9:30 a.m. EDT, while the S&P 500 and tech-concentrated Nasdaq dropped 3.9% and 4.2%, respectively.

The losses since prior to Trump’s “Liberation Day” announcement Wednesday are staggering: The Dow is down 12%, or more than 5,000 points, the S&P is down 14% and the Nasdaq is down 15%.

Wall Street warnings on the fallout of Trump’s 10% or greater tariffs accelerated, as Goldman Sachs economists said Sunday they now expect a recession if the White House maintains the announced tariff rates and Jamie Dimon, the billionaire head of the U.S.’ largest bank JPMorgan Chase, wrote to shareholders Monday the “recent tariffs will likely increase inflation.”

Trump Demands Fed Interest Rate Cuts

Trump’s first comments Monday showed no capitulation on tariffs, suggesting “the slow moving Fed should cut rates!” and falsely claiming “there is NO INFLATION.” He warned on his Truth Social platform: “Don’t be Weak!” Economists and policymakers widely agree inflation will worsen under Trump’s tariffs, and, even prior to the trade policy shift, inflation is still well above the Federal Reserve’s 2% goal. The historically politically independent Fed will conduct a closed-door meeting among its governing board Monday. Trump has not blinked at the stock market rout his policies initiated, even sharing a post Friday claiming he’s crashing the market “on purpose.”

What Is A Bear Market?

A bear market occurs when a financial asset, most commonly a stock index, declines 20% or more from a recent high. Prior to the tariff stock meltdown, all three major U.S. indexes last entered bear market territory in 2022 as inflation raged at a four-decade high, causing the Federal Reserve to dramatically raise interest rates.

What Stocks Are Down The Most From Tariffs?

Already battered last week, big technology stocks tanked early Monday, as shares of iPhone maker Apple (down 7%), artificial intelligence chip designer Nvidia (down 6%) and Elon Musk’s Tesla (down 7%) all struggled after dropping about 15% between Thursday and Friday. Also slumping were bank stocks, as shares of JPMorgan and Goldman dropped 3% and 6%, respectively, building on double-digit slides last week.

S&p 500 Teeters On Verge Of Bear Market

The Nasdaq officially entered a bear market Friday, the S&P entered one Monday as it fell more than 20% below its February peak, while the Dow is not far behind, declining 18% from its December all-time high. The Nasdaq is 26% below its December record.

Japan’s Nikkei 225 Leads Global Stock Market Slide

Stocks tumbled in regular Europe and Asia trading Monday, as Europe’s Stoxx 600 and the U.K.’s FTSE 100 indexes tumbled 4% apiece and China’s CSI 300 and Japan’s Nikkei 225 indexes fell 7% and 8%, respectively.