Wall Street suffered another massive selloff Monday, driven by the economic uncertainty created by President Donald Trump's tariff policies and growing fears of a recession.
The Dow Jones Industrial Average plunged by nearly 900 points before cutting its losses to 2.08% shortly before close. The tech heavy Nasdaq dropped by 4%, and the S&P 500 shed 2.69% as investors continued to show skepticism over Trump's off-and-on, inflationary tariff plan.
"We are in the throes of a manufactured correction," Sam Stovall, chief investment strategist at CFRA Research, told CNBC. "I say manufactured because it's really based in response to the new administration's tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy."
Tech Stocks suffered the brunt of the nosedive with all of the "Magnificent Seven" shares sustaining losses. Alphabet, Apple, Facebook, and Nvidia all saw losses in excess of 5%.
The correction comes as Trump has reversed himself several times over trade policies, making investors nervous about how his plan will impact prices that get passed along to consumers.
The Federal Reserve has been performing a tight-rope act to escape recession but recent data indicates an economy teetering on the edge.
