Stocks fall sharply as investors fret Trump’s policies
U.S. stocks fell sharply on Monday, continuing the losses of the previous week after President Trump said the economy faced a “transition period” and would not rule out the recession.
The Dow Jones industrial average fell by 445 points, or 1%, to 42,356. The S&P 500 fell 120 points, or 2.1%, to 5,649, while the Tech-Have Nasdaq fell 632 points, or 3.5%, to 17,565.
The loss on Wall Street came the day after Mr. Trump refused to say whether he expected this year’s recession, and the president told Fox News on Sunday: “I hate to predict something like this. There was a transition period because there was a big thing we were doing.”
The White House insists on its own that tax cuts and tariff revenues will strengthen the economic attack, the biggest market crash since Mr. Trump was elected four months ago.
The S&P 500 continues to decline from record highs in February, with strategists warning ongoing stock volatility due to uncertainty about U.S. trade policy, tariffs and inflation. Some economists believe inflation may increase this year, economists at Morgan Stanley Research and Goldman Sachs Recent Hiking Prediction.
“The risk of higher inflation has recently taken the back of the market perspective as slower growth has moved to the forefront,” said John Canavan, an economics analyst at Oxford.
The White House agencies that cut taxes and regulations aim to bring manufacturing and jobs back to the United States, but the end result of Mr. Trump’s policy is far from clear.
“Many investors support the president’s business agenda for growth, but the government’s fanatical approach to decision-making is disturbing,” said Michael Arone, chief investment strategist at Interstate Street Global Advisor.
