A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City on March 10, 2025. (Photo by CHARLY TRIBALLEAU / AFP)
London: Stock markets dropped on Monday with tech shares leading the plunge as investors fretted over the risk that US President Donald Trump's trade policies could nudge the United States into recession.
On Wall Street the tech-heavy Nasdaq fell more than 3.6 percent after Trump himself declined to rule out the risk of a US recession.
"I hate to predict things like that," he told Fox News on Sunday when asked directly about a possible recession this year.
"There is a period of transition because what we're doing is very big -- we're bringing wealth back to America," he said, adding: "It takes a little time."
Trump's on-off tariff threats against Canada, Mexico, China and others have left the US financial markets in turmoil and consumers unsure what the year might bring.
"President Trump seems to have abandoned the US stock market and is willing to put his political vision above the near-term outlook for the US economy," said Kathleen Brooks, research director at trading platform XTB, in a note.
The Nasdaq was bogged down by retreats in the so-called Magnificent Seven tech stocks, which include Google parent Alphabet, Amazon, Meta and Nvidia.
Stocks in electric carmaker Tesla, owned by Trump's billionaire advisor Elon Musk, slumped by more than 11 percent.
"Unease about the effect of Trump's tariffs hangs over financial markets at the start of the week," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The prospect of a recession in the US is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous."
David Morrison, senior market analyst at financial services firm Trade Nation, added: "Risk sentiment has soured as investors react to President Trump's various tariff announcements and as the US economic outlook begins to cloud over."
