US stocks nosedived and Bitcoin tumbled on Monday as investor anxiety soared following US President Donald Trump’s comments suggesting a potential economic recession, CNN reported. Wall Street’s fear gauge hit its highest level this year, sparking a widespread selloff across global markets.
The downturn began early, with all three major US indexes opening in the red and continuing to slide throughout the day. The Dow Jones Industrial Average closed 890 points lower after briefly plummeting over 1,100 points. The broader S&P 500 fell by 2.7%, and the tech-heavy Nasdaq Composite dropped 4%, marking its worst single-day loss since September 2022. Both the Dow and S&P 500 posted their worst performance of the year.
The market’s steep decline wiped out all gains made since the US presidential election in November. Investor fears were fueled by Trump’s tariff policies and his refusal to rule out the possibility of an economic recession. In an interview with Fox News’ “Sunday Morning Futures with Maria Bartiromo,” Trump acknowledged that the US economy could face a “period of transition” due to significant policy shifts.
“I hate to predict things like that,” Trump said when asked about the potential for a recession. “There is a period of transition because what we’re doing is very big.” His remarks further rattled already nervous investors.
Technology stocks bore the brunt of the selloff, dragging the Nasdaq into correction territory. Major tech firms like Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) all closed sharply lower. Tesla plunged 15.4% and has now lost nearly 45% of its value this year due to declining sales in Europe and ongoing controversy surrounding CEO Elon Musk’s perceived influence on the Trump administration.
Meanwhile, Nvidia shares fell by 5%, and Palantir (PLTR), a prominent AI stock, dropped 10%. Bitcoin also suffered, plunging to $78,000—its lowest level since November—amid the broader selloff of risky assets.
The White House attempted to calm markets by touting Trump’s economic agenda, emphasizing growth through tariffs, deregulation, and energy development. “President Trump delivered historic job, wage, and investment growth in his first term and is set to do so again,” said White House spokesman Kush Desai.
However, Trump’s aggressive tariff stance has continued to unsettle markets. Plans to double tariffs on Chinese imports and implement steep tariffs on steel, aluminum, and Canadian dairy products have fueled investor uncertainty. Trump also hinted at further tariff increases, heightening fears of a prolonged trade war.
In response to the turmoil, the yield on the 10-year US Treasury fell to 4.225% as investors sought the safety of government bonds. Analysts are now closely watching inflation data set to be released later this week for further insights into the economy’s trajectory.
With recession fears mounting and policy uncertainty persisting, market volatility is expected to remain high in the days ahead.
