Nasdaq Sees Worst Drop Since 2022 as Recession Fears Grow

​The stock market took a heavy hit on Monday as growing recession fears sent investors scrambling. The Nasdaq Composite plunged 4 percent, marking its worst day since 2022, while the Dow Jones Industrial Average dropped nearly 900 points and the S&P 500 fell 2.7 percent.

Big Tech was at the center of the selloff. Tesla plummeted 15 percent, its biggest one-day drop since 2020, while Apple, Microsoft, Amazon, and Nvidia all fell between 2.4 percent and 5.1 percent.

The Cboe Volatility Index (VIX), often called Wall Street’s fear gauge, soared to its highest level since August, signaling mounting uncertainty about the market’s direction.

Trump’s Comments Add to Market Jitters
Over the weekend, President Trump refused to rule out a recession, telling Fox News that the U.S. was in a "period of transition" due to his administration's economic policies. Investors were rattled, as many had expected Trump to push for pro-growth measures to support the markets.

While Commerce Secretary Howard Lutnick attempted to reassure the public, stating that “there’s going to be no recession in America”, investors seemed more focused on Trump’s vague remarks, which some saw as a warning rather than a reassurance.

“We have an administration that’s radically different from the last one,” said George Cipolloni, portfolio manager at Penn Mutual Asset Management. “We have a whole other set of concerns that could actually lead us back to a potential hard landing”.

Wall Street Rethinks Recession Risks
Major banks are also adjusting their economic outlooks. JPMorgan Chase and Goldman Sachs both increased their recession probability forecasts, citing trade uncertainty, corporate layoffs, and weaker economic data.

Friday’s jobs report showed that the labor market remains stable for now, but some analysts worry that Trump’s push for deportations and government layoffs could weaken employment figures in the coming months.

Adding to the volatility, the 10-year Treasury yield dropped to 4.21 percent, reflecting a flight to safety as investors moved into bonds. Meanwhile, the U.S. dollar fell to its lowest level since November, extending last week’s decline.

What’s Next for Investors?
Markets are likely to remain volatile as investors digest the latest economic signals and White House policies. If Trump’s administration doesn’t provide clarity on trade and fiscal plans, uncertainty could continue to weigh on stocks.

For now, Wall Street is left wondering: Is this just a correction, or the beginning of a deeper downturn?







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