Wall Street experienced a notable drop at the opening bell on Monday, with significant indexes plummeting as investor worries increased about the possible economic impact of President Donald Trump’s extensive tariff policies. Numerous traders opted for government bonds as a more secure choice during the increasing uncertainty.
The Dow Jones Industrial Average decreased by 1,212.98 points, equivalent to 3.17%, settling at 37,101.88. The S&P 500 dropped 181.37 points, or 3.57%, to 4,892.71, while the Nasdaq Composite fell 623.23 points, or 4.00%, to 14,964.56 at the start of trading.
On Monday, the S&P 500 persisted in its decline, falling more than 20% from its all-time high, which usually indicates the onset of a bear market for the primary US stock index.
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The Dow Jones Industrial Average has decreased as well, now over 17% beneath its highest point ever recorded. At the same time, the Nasdaq had already fallen into bear market territory the prior week, as worries about a possible recession, exacerbated by extensive tariffs enacted by US President Donald Trump, unsettled global markets.
According to the standard definition, an index enters a bear market when it finishes at least 20% lower than its last all-time peak.
The most recent occasion the S&P 500 formally entered a bear market was in June 2022, during doubts regarding the Federal Reserve’s capability to manage inflation without causing an economic decline.
Traditionally, bear markets frequently occur before recessions and usually last until investors feel that the most severe economic issues are over. Research firm CFRA reports that nine out of twelve bear markets since 1948 have occurred alongside recessions.
Trump’s aggressive trade policies have led Wall Street analysts to raise the chances of a U.S. recession. Market players are also wagering on possible interest rate reductions as the president remains steadfast on tariffs, demonstrating no intent to negotiate without a solution regarding the trade deficit with China.
