US stocks were sharply lower on Monday, with the S&P 500 losing 1.4%, the Dow Jones dropping 380 points, and the Nasdaq sinking about 2%. This marked an extension of last week's losses as concerns over the US economic growth outlook continue to mount.
US stocks sharply lower
In a Fox News interview, President Trump declined to rule out a potential recession, attributing the current economic phase to a "period of transition" following significant tariff policy changes implemented by his administration. Trump’s comments added to the growing unease surrounding the economic landscape. Meanwhile, Federal Reserve Chairman Jerome Powell acknowledged rising economic uncertainty during his statements last week, while recent jobs data pointed to a cooling labor market, further intensifying concerns about the pace of economic recovery.
Focus on US inflation
This week, traders will focus on key inflation data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) reports scheduled to be released, which could provide further insights into inflationary pressures and the trajectory of the economy. Sectors such as communication services, technology, and consumer discretionary were among the worst performers, while the energy sector showed relative strength, outperforming the broader market.
Tech stocks on the downside
On the corporate front, megacap stocks experienced notable declines, with Apple falling 2.7%, Microsoft dropping 2.2%, Nvidia sinking 2.5%, Amazon slipping 1.9%, and Meta declining by 3.5%. Tesla also saw a significant 5.7% tumble after data revealed a 49% plunge in shipments to China in February, sparking concerns over its global demand and growth prospects. The combination of geopolitical risks, economic data, and corporate earnings continues to fuel market volatility, leaving investors on edge as they await further developments.
