Dow drops 890 points, Nasdaq faces worst decline since 2022 amid rising recession fears from tariff policy uncertainty.

In Short

On Monday, major US stock indices fell sharply, with the Dow dropping over 890 points, raising recession fears amid tariff policy uncertainty. The tech-heavy Nasdaq experienced its worst day since September 2022, emphasising ongoing market volatility and investor caution.

A significant market downturn unfolded on Monday, heightening recession fears among investors.

This comes amid concerns regarding tariff policy uncertainty, which some believe may lead the economy towards recession.

The Dow Jones Industrial Average fell by 890.01 points, or 2.08%, closing at 41,911.71.

The S&P 500 also experienced a decline of 2.7%, reaching its lowest level since September, with a final closing at 5,614.58.

However, the most considerable losses were seen in the tech-heavy Nasdaq Composite, which dropped 4%, marking its worst day since September 2022 and finishing at 17,468.32.

Since its peak on February 19, the S&P 500 has decreased by 8.7%, while the Nasdaq Composite has fallen nearly 14% from its recent high.

A decline of 10% is classified as a correction on Wall Street.

The day’s losses escalated as trading progressed, although major averages recovered slightly before the market closed.

Investors remain cautious as they navigate the current economic landscape and potential implications of ongoing tariff discussions.

This sell-off underscores the volatility in the market, reflecting broader concerns about the economic outlook.