US stock markets crash: Dow Jones plummets, S&P 500 down 4% as Donald Trump tariffs, recession fears loom large

Trump has his stance regarding trade deficit reduction with partner nations, indicating he would not negotiate unless this issue was addressed.

US stock markets joined the global market selloff on Monday, with S&P 500 opening 3.2% lower. At 9:38 AM GMT, S&P 500 was trading at 4,870.94, down 203 points or 4%. Nasdaq was at 14,894.10, down 694 points or 4.45%. S&P 500 saw its poorest performance since the COVID-induced economic crisis in March 2020. The Dow Jones Industrial Average declined by 1,200 points.
Stock markets around the world are bleeding due to US President Donald Trump‘s reciprocal tariffs announcement, which has stoked fears of a global recession, including in the US.
Ahead of the US stock market opening, Trump asked people not to be weak. “The United States has a chance to do something that should have been done decades ago. Don’t be Weak! Don’t be Stupid! Don’t be a Panican (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!” he said on social media.
European and Asian markets experienced sharp declines, whilst S&P 500 index futures declined 2.7% during premarket trading. The index had fallen 17.4% from its February peak by the close of the previous week. Market analysts typically classify a decline of 20% or more from a recent peak as a bear market, according to an AP report.
Crude oil prices continued their downward trend, momentarily falling under $60 per barrel, reaching levels not seen since 2021. Dow Jones Industrial Average futures decreased by 2.4%, whilst Nasdaq futures registered a 3% decline.
Trump reaffirmed his stance on reciprocal tariffs on Sunday regarding trade deficit reduction with partner nations, indicating he would not negotiate unless this issue was addressed.
“Sometimes you have to take medicine to fix something,” Trump stated, whilst his administration remained unfazed by market volatility.
Whilst aboard Air Force One, he informed journalists that international leaders were “dying to make a deal.”
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Global stock markets have experienced losses worth trillions since Trump’s tariff announcement last week, with further declines observed on Monday.
In a shareholders’ letter on Monday, JPMorgan Chase CEO Jamie Dimon cautioned that the tariffs “will likely increase inflation.”
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he remarked according to an AFP report.
Prominent investor Bill Ackman criticised the Trump administration’s policies, stating that the president was “launching a global economic war against the whole world at once” and advised him to “call a time out.”
On Sunday, he expressed his concerns on X platform, warning that “We are heading for a self-induced, economic nuclear winter.”
Trump scolds China
Donald Trump criticised China on Monday following a severe stock market decline after Beijing countered his worldwide tariffs initiative.
European markets suffered significant losses, yet Asian markets experienced worse outcomes. Hong Kong’s Hang Seng index plummeted 13.2 percent, marking its steepest decline since the 1997 Asian financial crisis, whilst Tokyo’s Nikkei 225 witnessed a substantial drop of 7.8 percent.
A fundamental 10-percent tariff on global imports became effective on Saturday, with additional countries facing increased duties from Wednesday, including 34 percent charges on Chinese products and 20 percent on EU goods.
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As nations consider their responses, Beijing announced its reciprocal 34-percent duty on US imports, scheduled to commence on Thursday.
Trump reprimanded Beijing early Monday for disregarding “my warning for abusing countries not to retaliate”, whilst describing China as “the biggest abuser of them all” regarding tariffs.
Global markets hit hard
Taipei experienced its most severe decline in history, plummeting by 9.7 percent.
The Stoxx Europe 600 index declined by five percent during early afternoon trading, resulting in the evaporation of more than 1.5 trillion euros in market value within a matter of days.
The primary US oil contract fell under $60 per barrel, reaching its lowest point since April 2021, due to concerns about a worldwide economic downturn.
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“The market’s telling you in plain language: global demand is vanishing, and a global recession is on the cards and coming on fast,” said Stephen Innes at SPI Asset Management.
The Indian equity markets witnessed a dramatic decline on Monday, marking the steepest percentage fall in a single day since March 2020, during the COVID-19 crisis.
The primary indices, BSE Sensex and Nifty 50, initially plunged approximately 5% at the start of trading, before showing modest signs of recovery.
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