Global stocks saw a significant decline on Monday, while U.S. bond yields fell, as investors became increasingly concerned about a potential economic slowdown. This fear was intensified after President Donald Trump hinted that his tariffs could lead to a recession.
The MSCI global stock index dropped by over 2%, marking its biggest one-day fall since August. In the U.S., the Nasdaq led the losses, plunging 4%, its sharpest decline since September 2022.
Trump’s Comments Heighten Investor Anxiety
Investor caution began to set in as early as Sunday when President Trump, in an interview with Fox News, discussed a “period of transition” and refrained from predicting whether his tariffs on China, Canada, and Mexico would trigger a U.S. recession.
Market strategists pointed to these comments as a key factor driving the cautious sentiment that dominated the market on Monday.
“The Trump administration seems more accepting of the idea that they are OK with the market falling, and they may even be OK with a recession to achieve their broader goals,” said Ross Mayfield, an investment strategist at Baird in Louisville, Kentucky.
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