The U.S. stock markets experienced a decline on Monday amid escalating concerns over tariffs and the looming specter of a recession. Following a turbulent previous week marked by uncertainties surrounding new U.S. tariffs and the erratic implementation decisions by President Trump, market indices suffered notable losses. The S&P 500, in particular, saw a significant 3.1% drop — its most substantial decrease since September.

Over the weekend, President Trump’s comments on a potential recession further fueled apprehensions among investors. While Trump acknowledged a period of transition due to the magnitude of policy changes, he refrained from ruling out the possibility of a recession. In contrast, Commerce Secretary Howard Lutnick expressed unwavering optimism, asserting that a recession was not on the horizon.

However, by midday on Monday, U.S. investors displayed heightened concerns rather than confidence. The Dow Jones Industrial Average plunged by approximately 500 points, representing a 1.2% decrease, while the S&P 500 and Nasdaq also experienced significant declines of 2.2% and over 3.3%, respectively. The market’s reaction underscored the prevailing unease and uncertainty surrounding economic conditions amidst the evolving tariff situation and recession fears.