US stocks tumbled on Monday as growing fears over President Donald Trump’s trade tariffs continued to rattle investors, with the Dow Jones Industrial Average falling 1,200 points, or 3.2%, marking a grim start to the week, CNN reported. Worries about the long-term effects of sweeping tariffs on both the US economy and global trade drove significant market declines.
Markets in Bear Territory
According to the report, the turmoil on Wall Street pushed US stocks into bear market territory, defined as a 20% drop from recent peaks. The S&P 500 also slumped by 3.4%, while the Nasdaq Composite dropped by 3.96%, the report said, adding that these declines come on the heels of a record high for the S&P 500 just seven weeks ago, in February. If the index closes below bear market levels, this would represent the second-fastest shift from peak to bear market in history, trailing only the rapid downturn during the COVID-19 pandemic.
Global Impact and Investor Anxiety
Elsewhere, the effects of the trade conflict between the US and its major trading partners were felt worldwide, with Asian markets suffering major losses, and European stocks following suit, shedding substantial value. As concerns about the global economy deepened, the Cboe Volatility Index, often referred to as Wall Street’s fear gauge, surged to levels not seen since the height of the pandemic, the report said.
As the US stock market opened on Monday, futures signals suggested even more declines were likely. The ongoing uncertainty surrounding US trade policies has left investors in a lurch about the future, with many now questioning the long-term economic consequences of the tariffs.
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