Stocks fell sharply Monday amid growing economic uncertainty and persistent worries about President Donald Trump’s tariff policies. Wall Street’s worst day of 2025 came a day after Trump refused to rule out a recession in an interview with Fox News.
The S&P 500 fell roughly 2.7% and is now down 9% from its record high just one month ago. The Dow Jones Industrial Average dropped nearly 900 points, or approximately 2%. And the Nasdaq Composite had the worst day of the three major indexes, falling 4 percent in its worst day since mid-2022.
Many big names suffered significant losses Monday, including many of the “Magnificent 7” tech stocks that led the markets to new highs in recent years. Chipmaker Nvidia fell 5% and is now down 30% in the last two months. Elon Musk’s Tesla plunged a stunning 15%, the company’s worst day since Sept. 2020.
The terrible month for stocks comes as the latest data on consumer sentiment and inflation expectations suggests Trump’s policies, particularly on tariffs, have spooked both businesses and consumers. But in regards to businesses’ requests for more clarity on the implementation of tariffs, Trump told Fox News, “They have plenty of clarity.”
In fact, Trump and his allies have admitted that pain could be coming soon for the American economy. “There’ll be a little disturbance,” Trump said during his joint address to Congress. “We’ve become addicted to this government spending, and there’s going to be a detox period,” Treasury Secretary Scott Bessent told CNBC. Simultaneously, Republicans are scrambling to blame former President Joe Biden for the economy’s struggles. “What I have to do is build a strong country,” Trump said Sunday. “You can’t really watch the stock market.” But on days like Monday, Americans have no choice but to watch the consequences of his policies.
James Downie is an opinion editor for MS NOW Daily.
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