Big fall in US stock market; NASDAQ tumbles 4 percent
The US stock market witnessed a massive sell-off on Monday, leading to trillions of dollars in losses as President Donald Trump warned that he would bring the economy to a standstill and create enough uncertainty through tariffs and other policies to fulfill his wishes.
The Dow Jones Industrial Average fell 890 points, or 2.1 per cent, while the Nasdaq Composite dropped 4 per cent. It was the worst day ever in a threat of looming recession, where the S&P 500 has fallen more than 1 per cent seven times in eight days, reportedly due to Trump’s tariff plans.
The concern among investors is that such moves will either directly harm the economy or harm US companies and consumers, bringing the economy to a standstill and creating enough uncertainty.
What is the reason behind this decline?
The reason behind the fall in the US stock market is said to be Wall Street getting nervous. Because Donald Trump warned that trade wars with Canada, Mexico and China could cause “a little trouble” to Americans. According to a Bloomberg report, Wall Street strategists and economists are raising the possibility of a US economic recession.
The losses come after a sell-off in US equities led by technology stocks. Exchange-traded funds that seek to generate high returns on digital assets or crypto-linked themes were among the biggest losers in Monday’s market decline. Two ETFs used to make leveraged bets on the Bitcoin-Holding Company Strategy, formerly known as MicroStrategy, fell more than 30 per cent for the day.
