The Nasdaq technology sector plummeted over 4%, with Tesla dropping more than 10%
U.S. stocks fell significantly due to concerns over a trade war triggered by Trump's remarks, with the technology sector of the S&P 500 plunging more than 4%, and Tesla's stock price dropping over 10%. The Dow Jones Industrial Average fell by 559 points, while the S&P 500 and Nasdaq dropped by 132 points and 654 points, respectively. Analysts warn that market volatility may intensify, and Morgan Stanley and other institutions have lowered their optimistic outlook for the stock market
[Hong Kong Economic Journal] U.S. President Donald Trump's remarks have raised concerns in the market that the trade war may slow economic growth. Investors are also awaiting economic data this week, including inflation. U.S. stocks were significantly pressured on Monday, with the Dow Jones Industrial Average further testing lower levels during the session, dropping over 550 points, and the technology sector of the S&P 500 index plummeting more than 4%. Electric vehicle manufacturer Tesla's stock price fell sharply by over 10%.
Dow Jones drops over 550 points
As of 12:18 AM Hong Kong time, the Dow Jones was at 42,241 points, down 559 points or 1.31%; the S&P 500 index was at 5,637 points, down 132 points or 2.3%; the Nasdaq was at 17,542 points, down 654 points or 3.69%. NVIDIA's stock price recently slid 4.2%, while Tesla retraced 10.3%.
Trump stated that the U.S. economy is facing "a transition period," but did not directly rule out the possibility of the economy falling into recession due to tariff measures and government layoffs. In an interview with Fox News on Sunday, when asked if he expected a recession this year, he replied, "I don't like to predict these things. It is indeed in a transition period because what we are doing is very big."
Concerns over economic slowdown loom
Several analysts on Wall Street have warned that stock market volatility may intensify. Morgan Stanley strategist Michael Wilson is the latest to issue a warning about concerns over economic growth.
Additionally, JPMorgan Chase and RBC Capital Markets have lowered their optimistic expectations for the stock market this year, as Trump's tariff policies have exacerbated concerns over slowing economic growth
