The US stock market experienced a significant decline on Monday as anxiety over a potential economic slowdown intensified. President Donald Trump acknowledged the uncertainty, suggesting that the nation is in a "period of transition" and did not dismiss the possibility of a recession. This acknowledgment came during an interview with Fox News, which was broadcast on Sunday but recorded on Thursday.
The main US markets plummeted to levels not seen since before Trump's election victory in November. Initially, investors greeted Trump's presidency with optimism, anticipating tax cuts and reduced regulation. However, recent events have reversed sentiments, causing widespread concern among investors.
Heavy losses were observed across various sectors, with tech stocks bearing the brunt of the decline. The Nasdaq Composite Index sank by 4.0% at the close of trading, marking its largest single-day loss since 2022. The S&P 500 Index fell by 2.7%, while the Dow Jones Industrial Average dropped 2.1%. Notably, Tesla shares plunged by approximately 15.4%, while chipmaker Nvidia saw a decrease of over 5%. Other major technology companies, including Meta, Amazon, and Alphabet, also experienced significant declines.
In his interview, President Trump addressed the economic climate and the ongoing changes his administration is implementing.
"There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing." – Donald Trump
Despite his optimistic tone, Trump did not shy away from the possibility of an economic downturn.
"I hate to predict things like that," – Donald Trump
The market turmoil has raised questions about the future trajectory of the US economy, with investors closely monitoring developments and policy decisions. As fears persist, market participants are urged to brace for potential volatility.