US stocks tumble on recession fears; Nasdaq Composite nosedives 4%, S&P 500 sheds $4 trillion in market value

Asked over the weekend whether he was expecting a recession in 2025, President Donald Trump told Fox News Channel: “I hate to predict things like that. There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing.” He then added, “It takes a little time. It takes a little time.”

The Dow Jones Industrial Average slipped 890.01 points, or 2.08%, to settle at 41,911.71, while the S&P 500 lost 155.64 points, or 2.70%, to end the session at 5,614.56 levels. The tech-heavy index, the Nasdaq Composite, dropped 727.90 points, or 4.00%, to 17,468.32.

On Monday, the S&P 500 closed down 8.6% from its record high, which was touched on February 19, shedding over $4 trillion in market value since then and nearing a 10% decline that would represent a correction for the index.

The Nasdaq index saw the sharpest decline of the major averages, falling 4% for its worst session since September 2022 and closing at 17,468.32.

A barrage of new Trump policies has increased uncertainty for businesses, consumers, and investors, notably back-and-forth tariff moves against major trading partners like Canada, Mexico, and China.

The “Magnificent Seven” stocks, once the stars of this bull market, led the declines Monday as investors dumped the group for perceived safer plays.