The US stock market tumbled sharply on Monday, continuing its losing streak as investor anxiety soared over trade tensions and economic slowdown fears. After posting three consecutive negative weeks, the S&P 500 extended its losses, while the tech-heavy Nasdaq Composite suffered its worst day since September 2022.
Meanwhile, the 30-stock Dow Jones Industrial Average sank nearly 900 points, closing below its 200-day moving average for the first time since November 1, 2023. The S&P 500 shed 2.7%, touching its lowest level since September, while the Nasdaq plunged 4%, marking its biggest one-day fall in 2025.
According to a Reuters report, Trump’s tariffs have wiped out $4 trillion from the S&P 500’s peak last month, a stark reversal from the optimism that previously fueled Wall Street’s rally.
Key Reasons Behind the US Market Stock Crash
Trump’s Tariff Policies Spark Recession Fears
Markets are on edge after President Donald Trump escalated trade tensions by increasing import tariffs on Chinese goods from 10% to 20%. In response, China imposed a 15% import tariff on American goods, mainly agricultural products sourced from Canada.
The tariff war has raised concerns about rising inflation, which could force the US Federal Reserve to hike interest rates further. Investors were further unsettled when Trump avoided directly addressing recession concerns in a Fox News interview, stating, “There is a period of transition, because what we’re doing is very big.”
Tech Stocks Lead the Sell-Off
Technology stocks, which had fueled the S&P 500’s rally in 2023 and 2024 with gains exceeding 20%, are now leading the downturn. On Monday:
The S&P 500’s technology sector dropped 4.3%
Apple (AAPL.O) and Nvidia (NVDA.O) both tumbled around 5%
Tesla (TSLA.O) plunged 15%, wiping out a staggering $125 billion in market value
As tech stocks struggle in 2025, the broader market is losing its primary growth driver, adding to investor pessimism.
US Treasury Yields Slide as Investors Seek Safety
Bond markets also reflected heightened concerns over a potential slowdown. The US 10-year Treasury yield dropped by 9 basis points to 4.226%, while the 2-year Treasury yield fell 10 basis points to 3.906%.
Lower yields signal increased demand for safe-haven assets as investors flee riskier stocks. However, falling yields also indicate concerns about weaker economic growth, further fueling recession fears.
What’s Next for the US Market?
Investors will closely watch key economic data releases later this week, including:
Job openings data on Tuesday
February’s Consumer Price Index (CPI) on Wednesday
Producer Price Index (PPI) on Thursday
These reports will provide critical insights into inflation trends and whether the Federal Reserve may adjust its monetary policy.
