The US stock market faced significant losses, with the Dow falling nearly 900 points as concerns over President Donald Trump’s trade policies intensified. In a recent interview, Trump hinted at a potential recession, causing alarm among investors.
During the trading session, all three major indexes opened sharply lower and continued to decline throughout the day, despite a brief afternoon rally. The Dow ultimately closed down 890 points, or 2.08%, while the S&P 500 dropped 2.7% and the tech-focused Nasdaq Composite plummeted 4%.
As the market reacts to Trump’s statements regarding tariffs—especially his threat to impose levies on imports from Canada, Mexico, and China—analysts warn that uncertainty around US economic policy is contributing to a wider selloff. Trump’s recent battle with Ukraine’s President Zelenskyy in the Oval Office has also added to the anxiety, leading to speculation about the US’s commitment to its allies.
In response to this turmoil, U.S. Treasury Secretary Scott Bessent indicated that discussions about a trade deal with Ukraine might not materialize as Trump previously suggested. Meanwhile, the market is experiencing record levels of fear, as reflected by the volatility index (VIX) reaching its highest point this year.
Tesla shares plummeted 15.4% on Monday, recovering none of the gains made following the US presidential election. Analysts note that this downturn presents a challenge for the electric vehicle’s market performance amid growing scrutiny of its operations.
Concerns are mounting in Europe, where leaders are monitoring US military aid to Ukraine, as a fluctuation in support could impact their own national security strategies. The EU has revealed plans to boost defense spending in response to the changing landscape.
Following the recent turmoil in the US political sphere, the overall sentiment has shifted, leading analysts to caution against the potential fallout from Trump’s unpredictable policies. The economic implications of such trade tensions underscore the fragility of the current recovery, as investors brace for weekly inflation data that could further influence market conditions.
As the situation develops, the focus remains on how these trade policies will affect both domestic and international markets, with ongoing uncertainties about the US’s role in global economic stability.
Credit: CNN
