US stocks experienced a significant downturn on Monday, with major indices plummeting as investor concerns intensified over President Donald Trump's economic policies.

The Dow Jones Industrial Average dropped nearly 900 points, while the S&P 500 fell by 2.7%, and the tech-heavy Nasdaq Composite plunged 4%, marking its worst single-day performance since September 2022.

The sharp decline was largely driven by Trump's refusal to rule out the possibility of a recession during a recent interview, where he described the economy as being in "a period of transition".

His tariff policies have heightened fears of an economic slowdown, leading to a broad market sell-off.

Bitcoin also suffered a substantial decline, falling below $80,000 for the first time since Trump's election, as investors moved away from high-risk assets amid growing economic uncertainty.

The CBOE Volatility Index (VIX), often referred to as Wall Street's "fear gauge," surged to its highest level of the year, reflecting extreme fear in the markets.

Despite assurances from the White House that Trump's policies would drive long-term growth, economic warning signs persist, with consumer confidence weakening and inflationary pressures mounting.

The tech sector was particularly hard hit, with major companies like Tesla, Nvidia, and Meta experiencing significant losses.

Tesla's stock plummeted over 15%, extending its year-to-date decline to nearly 45%. The market's downturn has erased all post-election gains, leaving indices at levels not seen since before Trump's electoral win in November.

Economic analysts are now closely watching key inflation data due for release later this week to assess whether price pressures remain persistent.

ANI