US stock futures experienced a significant decline Monday morning as President Donald Trump hinted at the possibility of a recession. S&P 500 futures fell by 1.37%, while Nasdaq futures dropped by 1.6%. The downturn comes amid ongoing concerns about Trump's fluctuating tariff policies, which have contributed to a tumultuous month for stocks.
Uncertainty surrounding tariffs remains a significant concern for investors. In an interview on Fox News' "Sunday Morning Futures With Maria Bartiromo," President Trump addressed these concerns, stating that the US economy was entering "a period of transition." He did not, however, dismiss the possibility of a recession, which is generally defined by two consecutive quarters of negative gross domestic product growth.
"I hate to predict things like that. There is a period of transition because what we’re doing is very big."
— Donald Trump
The impact of these uncertainties is reflected in the stock market. On Monday morning, futures tied to the Dow Jones Industrial Average were down 478 points or 1.2%. The National Bureau of Economic Research’s Business Cycle Dating Committee serves as the official arbiter of recessions, and their assessments will be closely watched in the coming months.
David Bahnsen, chief investment officer at the Bahnsen Group, expressed his views on the tariff situation in a note released Monday.
"The talk of tariffs is, in a lot of ways, worse than the implementation of them."
— David Bahnsen
Bahnsen believes that the discussions and speculations around tariffs contribute to market instability.
"The tariff talk, reversal, speculation, and chaos only fosters uncertainty."
— David Bahnsen