Major US stock indices tumble
A major market sell-off has rattled investors, with Wall Street experiencing its worst trading day in months. The Dow Jones Industrial Average tumbled nearly 900 points, closing at 41,911, while the S&P 500 fell 2.7% to its lowest level since September. But the biggest losses came in the tech-heavy Nasdaq, which plunged 4%, marking its worst day since 2022.
Trade policy fears drive uncertainty
At the center of the turmoil is growing uncertainty over trade policy, with concerns that new tariffs could push the US economy into recession. President Donald Trump, in a weekend interview, did not rule out the possibility, calling the current situation a “period of transition.” Meanwhile, Goldman Sachs has slashed its economic growth forecast, citing potential tariff impacts.
Tech stocks lead market declines
Investors pulled out of high-growth stocks, with the so-called “Magnificent Seven” taking heavy losses. Tesla dropped 15%, its worst day since 2020. Nvidia lost 5%, while Alphabet and Meta were down more than 4%. The market’s fear gauge, the Cboe Volatility Index, spiked to its highest level in months, while Bitcoin fell below $80,000 as investors fled risk assets.
Australian markets brace for a sharp drop
And the pain isn’t stopping in the US. Here in Australia, the ASX is set to follow Wall Street’s lead. Futures point to a sharp 70 point drop at the open, with the index expected to fall below 7,900 for the first time since August.
With recession fears mounting and volatility rising, investors will be watching closely to see if markets can stabilize—or if this sell-off has further to run.
