Wall Street took a brutal hit on Monday as U.S. stocks spiraled downward, with investors left guessing how much economic chaos President Donald Trump is willing to stomach in his tariff-fueled quest to reshape America’s economy.
The S&P 500 cratered 2.7%, erasing nearly 9% of its value since its peak last month. At its lowest point, the index was down 3.6%, teetering on the edge of its ugliest day since 2022’s inflation panic. The Dow Jones Industrial Average shed 890 points—a 2.1% tumble—while the Nasdaq plunged 4%, dragged down by slumping tech giants.
This latest nosedive caps a wild eight-day stretch where the S&P 500 lurched more than 1% in either direction seven times, a rollercoaster sparked by Trump’s erratic tariff threats. Analysts fear the turbulence could either tank the economy outright or spook businesses and consumers into a standstill.
Trump, asked about a possible 2025 recession on Fox News over the weekend, dodged a firm answer: “I don’t like predicting gloom. We’re in a transition—bringing wealth back to America. Big moves take time.” His Treasury pick, Scott Bessent, has floated the idea of an economic “detox” as the nation kicks its reliance on government spending, paired with plans to slash federal jobs and ramp up deportations—moves that could kneecap the labor market.
Economic warning signs are flashing. Surveys show growing gloom, and real-time data from the Atlanta Fed hints the U.S. economy might already be shrinking. Goldman Sachs’ David Mericle slashed his 2025 growth forecast to 1.7% from 2.2%, citing heftier-than-expected tariffs, with a 20% chance of recession—though he notes Trump could dial back if things get dicey.
Tech titans bore the brunt of the sell-off. Nvidia dropped 5.1%, now down over 20% this year after a jaw-dropping 820% run in 2023-2024. Tesla cratered 15.4%, deepening its 2025 loss to 45%, as Elon Musk’s Trump ties—and protests targeting Tesla amid government workforce cuts—sour its shine.
Markets abroad weren’t spared either, with Europe sliding and Hong Kong’s index down 1.8% after China reported its first consumer price drop in over a year. Meanwhile, U.S. Treasury yields sank to 4.22% as investors fled to safer bets.