Wall Street Tumbles as Recession Fears Shake Markets

New York, USA – U.S. stocks plunged on Monday, driven by mounting recession fears, uncertainty over tariff policies, and looming government shutdown concerns.

The S&P 500 dropped 2.7%, marking its biggest one-day decline since December 2023, while the Nasdaq tumbled 4.0%, its worst single-day loss since September 2022. The Dow Jones Industrial Average fell 890 points (2.08%) as the broader market suffered a steep selloff.

Key Market Pressures

📉 Tariff Uncertainty – Former President Donald Trump’s erratic trade policies and China’s retaliatory tariffs spooked investors.
📉 Tech Sector Slump – The Nasdaq tech index suffered as major AI-related stocks crashed, led by a 15.4% drop in Tesla after CEO Elon Musk’s government layoffs and political controversies.
📉 Recession Fears & Bond Yields – A spike in Japanese bond yields triggered a carry trade unwinding, causing investors to pull money out of tech stocks.
📉 Government Shutdown Risks – U.S. lawmakers are scrambling to pass a budget bill to avoid a federal shutdown, adding to market instability.

Market Data

🔹 S&P 500: -155.64 points (-2.70%) to 5,614.56
🔹 Nasdaq Composite: -727.90 points (-4.00%) to 17,468.32
🔹 Dow Jones Industrial Average: -890.01 points (-2.08%) to 41,911.71

The CBOE Volatility Index (VIX), often called the “fear index,” surged to its highest close since August 2024, signaling elevated market anxiety.