#USStocksPlunge The stock market experienced a significant decline on Monday, March 10, 2025, primarily due to investor concerns over President Trump's latest tariff announcement targeting Canada, Mexico, and China. This action has heightened fears of a potential recession, leading to substantial declines across major indices.
The Dow Jones Industrial Average fell by 2.1%, the S&P 500 dropped 2.7%, and the Nasdaq Composite decreased by 4%. Specifically, technology companies such as Nvidia, Palantir Technologies, and Tesla faced sharp declines, with Tesla's stock plummeting by 15.4%.
In an interview, President Trump acknowledged the possibility of a recession but emphasized that the tariffs are part of a broader strategy to strengthen the U.S. economy in the long term. Commerce Secretary Howard Lutnick echoed this sentiment, expressing confidence that there would be no recession and praising the administration's approach to reducing global tariffs.
Former economic advisor to Trump Stephen Moore criticized the tariffs as "misguided," warning that it could further disrupt an already "fragile" economy. He urged Congress to expedite the passage of an extension of tax cuts to stimulate economic growth.
Volatility in the U.S. market has led some investors to consider opportunities in other regions. Analysts at Goldman Sachs noted that the MSCI China Index has risen by 20% this year, making the Chinese market appear more attractive amid fluctuations in the U.S. market. They suggested that global mutual funds may increase their allocations to Chinese equities due to recent U.S. market volatility and technological advancements in China.