Wall Street in Freefall: Nasdaq Sinks 4% – Tesla, Nvidia, and Apple Slip

US stock markets experienced a sharp sell-off on Monday, with all major indices closing significantly lower as renewed concerns over a potential trade war rattled investor confidence. The downturn followed comments made by President Donald Trump over the weekend, which reignited fears that escalating trade tensions could trigger an economic recession.

The technology-heavy Nasdaq Composite was hit particularly hard, tumbling 727.90 points or 4.00% to close at 17,468.32—its lowest closing level since September. This marked the steepest single-day percentage decline for the index in months, as investors moved away from high-growth tech stocks in response to growing uncertainty.

The broader S&P 500 also faced heavy losses, dropping 155.64 points or 2.70% to settle at 5,614.56. This marked the index’s lowest close since September and its largest daily percentage decline since December. The losses were broad-based, affecting nearly every sector as investor sentiment soured.

The Dow Jones Industrial Average wasn’t spared either, shedding 890.01 points or 2.08% to end the session at 41,911.71—its weakest close since November 4. The blue-chip index’s drop reflected growing caution among investors as economic uncertainty deepened.

The sell-off underscores how sensitive the markets remain to geopolitical and economic developments. President Trump’s remarks about trade policy over the weekend appeared to heighten fears that new tariffs or trade barriers could disrupt global economic growth, putting additional pressure on an already fragile market environment.

Investors are now bracing for further volatility as they await more clarity on the trade front and assess the potential economic fallout from heightened tensions. The combination of recession worries and geopolitical uncertainty continues to weigh heavily on market sentiment.

Over the weekend, former President Donald Trump addressed concerns about the possibility of a recession in 2025 during an interview with Fox News Channel. When asked directly whether he anticipated an economic downturn next year, Trump responded cautiously, avoiding a definitive prediction.

“I hate to predict things like that,” Trump remarked, acknowledging the uncertainty surrounding the economic outlook. He suggested that the country is currently undergoing a “period of transition” as a result of major economic shifts initiated under his leadership. Trump emphasized that the goal of these changes is to restore and strengthen America’s economic standing by “bringing wealth back to America.”

Trump acknowledged that such large-scale economic adjustments take time to produce visible results. “It takes a little time. It takes a little time,” he repeated, implying that while the benefits of these policies may not be immediate, they are part of a broader effort to enhance long-term economic stability and prosperity.

Trump’s comments reflect a cautious but optimistic stance on the economy, suggesting that while short-term challenges may arise, he believes the underlying changes will ultimately benefit the nation’s financial health. His remarks come at a time when investors and analysts are closely watching economic indicators for signs of slowing growth or potential recessionary pressures.

On Friday, Federal Reserve Chair Jerome Powell provided a mixed assessment of the US economy, highlighting both its current strength and the need for caution when considering future adjustments to interest rates. Powell noted that the economy remains on solid ground, supported by robust consumer spending and a stable labor market. However, he also emphasized that the Federal Reserve would take a measured approach when deciding whether to lower borrowing costs, signaling that policymakers remain wary of potential inflationary pressures or other economic risks.

In the bond market, the yield on the benchmark 10-year Treasury note declined to 4.21%, down from 4.32% at the close of trading on Friday. The drop in yields suggests that investors may be seeking the relative safety of government bonds amid ongoing market volatility and economic uncertainty. Lower yields often reflect expectations that interest rates could remain stable or decline in the near future as the central bank carefully assesses the economic landscape.

The stock market reflected mixed sentiment among major technology stocks. Nvidia saw a decline of 0.70%, reflecting weakness in the semiconductor sector. Other tech giants also posted modest losses, with Meta Platforms slipping 0.44% and Amazon.com edging down 0.35%. The movement in these high-profile stocks indicates that investors remain cautious amid uncertain signals from both the Federal Reserve and broader economic conditions.

Powell’s balanced remarks underscored the delicate position of the US economy as policymakers navigate the challenges of sustaining growth while keeping inflation in check. The bond and stock market reactions highlight the ongoing tension between confidence in economic resilience and concerns over future monetary policy decisions.

Tech and Financial Stocks Show Mixed Performance as Crypto Sector Declines

Major technology and financial stocks delivered a mixed performance on Monday as investors responded to shifting market dynamics and corporate news.

Apple’s stock ended the session down 0.60%, reflecting cautious sentiment toward the tech sector. Meanwhile, Microsoft’s stock remained flat, suggesting that investors are holding steady as they await further signals about the company’s growth outlook and broader market conditions.

Tesla faced renewed pressure, with its stock declining 0.81% after UBS cut its forecast for the automaker’s first-quarter vehicle deliveries. UBS also lowered its price target for Tesla, raising concerns about potential headwinds facing the electric vehicle market. The downward revision weighed on investor confidence, contributing to Tesla’s underperformance relative to the broader market.

Financial stocks showed modest gains, with JPMorgan Chase rising 0.25% and Goldman Sachs edging up 0.06%. The strength in banking stocks suggests that investors remain cautiously optimistic about the financial sector’s ability to navigate the current economic environment, including the Federal Reserve’s cautious stance on interest rates.

In contrast, the cryptocurrency sector saw notable weakness, driven by a decline in Bitcoin prices. MicroStrategy suffered a sharp drop of 11.7%, reflecting the company’s significant exposure to Bitcoin’s price movements. Similarly, Coinbase fell 10.2% and Riot Platforms declined 5.2%, underscoring the sensitivity of crypto-related stocks to fluctuations in the broader cryptocurrency market.

The mixed performance across sectors highlights the ongoing tension in the markets as investors weigh corporate earnings forecasts, economic indicators, and monetary policy signals. The weakness in crypto and Tesla contrasted with the resilience in banking stocks, reflecting the complex and evolving nature of current market sentiment.

Gold and Oil Prices Slip Amid Strengthening Dollar and Economic Concerns

Precious metal prices eased on Monday as the US dollar strengthened slightly, putting downward pressure on gold and silver. A firmer dollar tends to make gold and other dollar-denominated commodities more expensive for holders of other currencies, which can reduce demand.

Spot gold declined by 0.2% to $2,905.05 an ounce as of 1201 GMT, reflecting the impact of the stronger dollar and shifting investor sentiment. Meanwhile, US gold futures remained relatively stable at $2,911.60 an ounce, suggesting that traders are awaiting clearer signals on monetary policy and economic growth before making significant moves.

Spot silver held steady at $32.55 an ounce, reflecting a more balanced supply-demand dynamic in the silver market despite broader pressures from currency fluctuations and economic uncertainty.

In the energy sector, crude oil prices weakened as signs of slowing economic activity in the world’s two largest crude consumers—the United States and China—weighed on demand expectations.

West Texas Intermediate (WTI) crude fell to trade below $67 a barrel, marking a decline of over 15% from its mid-January peak. The drop reflects growing concerns that weaker economic growth could dampen energy consumption and put further pressure on oil prices.

The declines in gold, silver, and oil highlight the complex interplay between currency strength, economic indicators, and market sentiment. While precious metals are facing headwinds from a stronger dollar, oil markets are grappling with the broader implications of slowing global demand.