US stock market crashes: Dow Jones tanks 1,300 pts, S&P 500 enters bear territory

Joining the global markets, the US stocks on Monday, April 7, crashed for the third straight session as tariff fear looms. The Dow Jones dropped over 1300 points while the S&P 500 entered bear territory.

The S&P 500 plunged 4% during the opening session on Monday, bringing its three-day losses to around 13%, a drop not seen in that short of a time since 2008 during the Great Financial Crisis. The S&P 500 is coming off its worst week since COVID-19 began crashing the global economy in March 2020.

The Dow Jones Industrial Average tanked 1,363 points, or 3.5%, while the Nasdaq Composite declined 4%, further into bear territory. The Nasdaq is off 26% from its high.

Investors remained concerned as President Donald Trump on Sunday said, “I don’t want anything to go down, but sometimes you have to take medicine to fix something. We have a trillion-dollar trade deficit with China, hundreds of billions of dollars a year we lose with China. And unless we solve that problem, I’m not going to make a deal.”

Heavyweight tech firms, which powered Wall Street's main indexes to record highs recently, have been the worst hit so far. Apple has lost close to 30%, while Nvidia is down 34% this year. Microsoft has shed 19%.

The information technology subindex has led losses among the major S&P sectors so far in 2025.

Information Technology stocks faced a major blow as shares of Tesla were down 9%, Nvidia fell 7%, Meta slipped 4.5%, Amazon tanked 4%, Netflix was down 3.5% and Apple also declined 6%. Shares of Alphabet hit its 52-week low, tumbling as much as 3%.

Share markets across the world saw a bad start to the week as all the global stocks tumbled on Monday.

Asian equity markets fell, European shares crashed to a 16-month low and oil prices tanked as investors feared the duties Trump announced last week could lead to higher prices and potentially a global recession.

Goldman Sachs has also raised the odds of a US recession to 45% in the next 12 months due to sweeping tariffs, the report stated.

Reacting to the tariff announcements, Federal Reserve Chairman Jerome Powell on Friday had said that the tariffs could drive up expectations for inflation, and lower rates could fuel still more price increases. Powell said that the tariffs, and their likely impacts on the economy and inflation, are “significantly larger than expected”.