Wall Street On Edge: Nasdaq Tumbles 4% As Economic Slowdown Fears Grip US Markets

US stock markets tumbled on Monday amid rising concerns about an economic slowdown, with investors wary that President Donald Trump’s tariff policies might trigger a recession.

Market Turmoil and Tech Slump

The tech-focused Nasdaq dropped by 4.0 percent—the steepest single-day decline since 2022—while the S&P 500 fell 2.7 percent and the Dow Jones Industrial Average slid by 2.1 percent. Major technology shares were hit hard, with Tesla plunging 15.4 percent and chipmaker Nvidia losing over 5 percent. Other tech giants, including Meta, Amazon, and Alphabet, also experienced significant downturns.

Trump’s Comments on Economic Transition

During an interview with Fox News, recorded on Thursday and aired on Sunday, President Trump addressed recession concerns without making firm predictions. “I hate to predict things like that,” he remarked, explaining that the US economy is in a “period of transition” due to major policy shifts aimed at bringing wealth back to America. Trump emphasized that tariffs are intended to boost domestic manufacturing and create jobs.

Government Actions and Economic Warnings

In tandem with Trump’s remarks, Treasury Secretary Scott Bessent warned that the economy might undergo a “detox” as it adjusts to reduced federal spending, a smaller government workforce, and stricter deportation policies—all measures that could impact the job market. Meanwhile, White House spokesperson Kush Desai highlighted that industry leaders have backed these policies with trillions in investments.

Analyst Concerns and Economic Indicators

Despite government assurances, economic analysts remain cautious. They warn that while industry investments might provide some support, the risk of slower economic growth persists, especially as inflation continues to pressure prices. Surveys and real-time data from the Federal Reserve Bank of Atlanta suggest that the US economy may already be contracting, even as the job market remains stable for now.

As investors brace for further market volatility, the unfolding economic landscape—shaped by policy shifts, regulatory actions, and global market dynamics—will be closely monitored. With expectations mixed and economic indicators hinting at a slowdown, the coming months will be crucial in determining the long-term impact of these policies on the US economy.