US stocks continued to roil under selling pressure from last week, with investor concerns mounting over a potential economic slowdown after President Donald Trump did not rule out a recession amid the implementation of US tariffs.
In early hours of trade, the Dow Jones Industrial Average fell 392 points, or 0.9 percent, while the S&P 500 dropped 1.8 percent, and the Nasdaq Composite slid 2.8 percent.
The tech-heavy Nasdaq was particularly weighed down by losses in the "Magnificent Seven" stocks. Tesla plunged 3 percent, Alphabet declined 4 percent, Meta lost 3 percent, and AI leader Nvidia slipped 2 percent.
This follows the S&P 500’s 3.1 percent decline last week, marking its worst weekly performance since September, while the Dow dropped 2.4 percent and the Nasdaq Composite lost 3.5 percent.
Consumer staples stocks gained in early trading, hinting a potential shift toward defensive plays following last week’s market sell-off. Shares of Procter & Gamble rose 1 percent, while Unilever jumped 2.4 percent, however, concerns of an economic slowdown dragged major retailers like Costco and Walmart.
Meanwhile, banking stocks came under pressure over similar concerns. JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs traded with cuts. Tesla also extended its recent losses, slipping nearly 3 percent and edging closer to erasing its post-election gains.
Investor anxiety remains elevated as they fear that tariffs imposed by the Trump administration could push prices higher, complicating the Federal Reserve’s ability to lower interest rates. In an interview aired on Sunday, Trump addressed concerns about a potential recession on Fox News, stating that the economy was undergoing "a period of transition."
Adding another layer of caution is a slew of high0value macroeconomic data, slated for release through the week. The New York Fed's consumer expectations survey is set for later today, while the University of Michigan's consumer sentiment reading arrives on Friday. Inflation data will also take center stage, with the February consumer price index due Wednesday and the producer price index following on Thursday.
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