The major stock index fought on Monday, continuing its steam-collected selling last week as investors began to zero at zero in the prospect of a major collapse in US growth amidst sustained inflation and wobbling job markets.
The S&P 500, the broadest index of stocks, fell 2.1% on Monday. Not only did he give up all the benefits after President Donald Trump’s election, he is now at his lowest level since September, and has essentially remained unchanged for the past seven months.
The high-tech Nasdaq went 3.4% off as it plunged deep into the “correction” field. The Dow Jones industrial average fell nearly 500 points or 1.2%.
The fears of this weekend’s recession have been raised after Trump said it wouldn’t be there. In an interview with Fox News that aired Sunday, Trump answered questions about the possible recession, saying the economy is experiencing a “period of transition.”
Few major companies survived Monday’s draw. Nvidia has been boosting its market over the past few years amid the AI investment boom, falling more than 4%, and is now 22% off. Other major losers included Apple, Microsoft and Tesla, down over 10%. The electric car maker also gave up all the benefits of post-election as CEO Elon Musk became a ubiquitous presence in Trump’s White House.
Even before debate over how protests against Musk and Tesla had affected stocks, flagging sales in Europe, particularly in Tesla’s most important market, China, had already taken a sip from the company’s value. These anti-Isk protests mainly correspond to the tech billionaire leadership on Trump’s government efficiency.
Crypto was also a hit on Monday, with Bitcoin prices below $80,000 for the first time since Trump’s election, calling its first crypto summit on Friday after the White House announced the creation of a “Strategic Bitcoin Reserve,” although some investors were disappointed with the details.
Coinbase stock, the largest US crypto exchange, fell 10% on Monday, similarly wiping out post-election profits.
Investors are armed with Trump’s apparently chaotic economic policies. The president repeatedly launched and stopped imposing tariffs on America’s biggest trading partner, but he and Musk have implemented dramatic cuts to the federal workforce, which have already threatened to slash the swampy with additional workers.
“We are in the pain of the manufactured corrections,” Sam Stovall, chief investment strategist at CFRA Research, told CNBC.
At the same time, many traders are just profiting or profiting from markets that have reached record highs under the Biden administration, Stovall said.
“Now we’re experiencing a typical pullback and will probably experience a minor fix before everything is done, which is good for resetting the dials in this ongoing bull market,” he said.