Wall Street’s actions have dropped while concerns about the economic effects of Donald Trump prices have intensified and Tesla has led a powerful sale in technological actions before high.
The S&P 500 index lost 2.7% on Monday, after falling 3.1% last week in its worst weekly performance in six months, while the major American banks have abandoned their previous bullish forecasts for shares this year.
The NASDAQ composite focused on technology has flowed 4%, its worst day in two and a half years. The technological index is down more than 13% compared to its December peak, leaving it in correction territory.
“This big sale seems ugly, it is nasty,” said Drew Pettit, actions strategist at Citigroup. “We were getting out of very high feelings and very high growth expectations. All this is simply recalibrating to the new risks before us, “he said, referring to concerns about the health of the American consumer and the aggressive trade policy of Trump.
The sale spread on Asian markets on Tuesday, where the Nikkei 225 index focused on the Japan exporter and Topix both lost 2.3% at the start of negotiations. South Korea Kospi fell 1.9% and Australia S&P / ASX 200 decreased by 1.4%. The Hong Kong Hang Seng index fell 1.5%.
American technology actions – which had pushed the higher Wall Street markets in the previous two years – were among the largest laggs, extending a recent rout.
Tesla, the electric car company led by Trump Ally Elon Musk, dropped by 15.4%. He has now abandoned all of these post-electoral gains and has dropped more than 50% since its summit in December.
The manufacturing giant of Tamias Nvidia, who was one of the greatest winners of the enthusiasm of recent investors for artificial intelligence, dropped by 5.1%.
Banque stocks also dropped, Morgan Stanley and Goldman Sachs sliding 6.4% and 5% respectively. The shares of private KKR and ARES investment groups lost 6.2% and 8.9%, respectively.
“What we see today is that people sell what they have,” said Shep Perkins, director of investments at Putnam Investments. “And people have many companies related to AI.”
The last shock of volatility, which also led to markets in Europe and Asia, came after the American president refused to exclude a recession or an increase in inflation when he rejected commercial concerns concerning the lack of clarity on his tariff plans.
The White House said on Monday: “We note a strong divergence between the animal spirits of the Stock Exchange and what we really see taking place of business and business leaders, and the second is obviously more significant than the first on what is in reserve of the long -term economy”.
However, investigations on businesses and consumers have highlighted growing concerns about economic prospects. Delta Air Lines late Monday reduced its forecasts for profits and sales, citing economic “uncertainty”. Its shares fell by more than 13% in trade after the opening hours.
In Europe, where actions have outperformed the United States this year, the Stoxx Europe 600 index lost 1.3%, driven by banks and technological actions. Germany, the Dax, which reached a series of records last week after the country agreed with a set of historical expenses, dropped by 1.7%.
US Treasury bills rallied on Monday, while investors asked for security assets. The yield to 10 years, which decreases as prices increase, fell by 0.1 percentage points to 4.22%.
The VIX index, known as the Gauge de Fear de Wall Street, has climbed to its highest level since mid-December.
Investors are concerned about the Trump trade war that harvested the American economy, the disappointing jobs on Friday are the last in terms of weak data.
Reprisal rates from China out of approximately $ 22 billion in American goods, including agricultural exports, entered on Monday.
During the weekend, the secretary of the Treasury, Scott Bessent, has little attended worried investors when he recognized the signs of American economic weakness. “Could we see that this economy we inherited begin to roll a little?” Of course, “he told CNBC.
Trump and Bessent seem to be prepared for “pain to redirect the economy,” said Jim Reid of Deutsche Bank. “Taken at its nominal value, these quotes suggest that their level of pain is higher than most would have believed a few weeks ago.”
Goldman Sachs lowered its growth prediction for the US economy to 1.7% on Monday, compared to 2.4% at the start of the year, because its commercial policy hypotheses became “considerably more unfavorable”.
The falls of the stock market in recent weeks mark a net reversal of the atmosphere at the end of last year and earlier this year, when hopes for deregulation and tax reductions under Trump fueled a market rally.
Instead, homework on commercial partners such as Canada, Mexico, China and the EU led investors to brake their bets and have greatly pushed the risk.
The S&P could lower almost 20% compared to its current level if “growth is more significantly falling and the recession becomes likely,” the US clients of Morgan Stanley said on Monday in the customers on Monday. “We are not here, but things can change quickly.”
JPMorgan estimates that the index could drop as low as 5,200 – a decrease of almost 10% of current levels – due to “commercial uncertainty”, while Citi analysts think that Trump’s benefits can push the S&P to 5500 points. In December, an average of 10 world banks expected the index of approximately 10% in 2025 to around 6,550 points.
