U.S. stocks fell sharply on Monday as fears rose as the slowdown caused by the economic slowdown.
NASDAQ sank 4.0% at the end of trading, the largest daily loss since 2022, suffering major losses in the largest market in other markets.
Tesla’s stocks fell by about 15.4%, while chipmaker Nvidia fell by more than 5%. Other major tech stocks such as Meta, Amazon and Alphabet have also sunk.
The S&P 500 index slides 2.7%, while the Dow Jones industrial average fell 2.1%.
Trump comes after being asked about concerns about a potential recession and said he is in a transitional period.
Speaking to Fox News in an interview that aired Sunday but recorded Thursday, Trump appeared to admit his concerns. “I hate predicting such things,” he said. “What we do is so big, so there’s a period of transition. We’re bringing wealth to America. That’s a big deal.”
The president has not commented on the economy since the interview aired, but his top officials and advisors have tried to ease concerns.
White House officials told reporters after closing the deal on Monday:
“The latter clearly has more meaning than the former, which is prepared for the economy in the medium to long term,” they added.
However, there is growing fear among economic analysts that growth will slow and prices will rise.
Last week, major US markets returned to levels before Trump’s election victory last November. This initially welcomed investors due to the hopes of tax cuts and lighter regulations.
Investors fear that Trump’s tariffs (taxes on goods applied when entering the country) will lead to higher prices, ultimately leading to the growth of the world’s largest economy.
“I think the level of tariffs Trump is imposing definitely has to cause inflation somewhere,” Killik & Co investment manager Rachel Winter told the Today program.
Economist Mohamed El Elian said investors were optimistic about Trump’s plans to deregulate and lower taxes, while underestimating the potential for a trade war.
He said the recent decline in stock markets, which began last week, reflects adjustments to those bets.
“It’s a complete change in what the market was expecting,” he added, noting that investors are also dealing with signs that businesses and households are beginning to curb spending due to uncertainties that could hurt economic growth.
But President Trump’s economic adviser Kevin Hassett opposed those projecting this bleak outlook.
In an interview with CNBC, Hassett said there are many reasons to be optimistic about the US economy, and tariffs imposed on Canada, Mexico and China are already bringing manufacturing and employment to the US.
“There are many reasons why we’re so bullish about the economy going forward,” he said.
He admitted that there was a “blip in the data” this quarter, pinning the timing of Trump’s tariffs and “Biden inheritance.”
