The US stock market rout intensified on Monday on fears that President Donald Trump’s next tariff rollout will deliver a shock to the global economy, with rising recession concerns leaving the S&P 500 Index on track for its worst quarter compared to the rest of the world since the 1980s.
The benchmark equities gauge slumped over 1% soon after the open in New York, teetering on the brink of a correction. The Nasdaq 100 Index dropped 1.6%, while a Bloomberg gauge of the “Magnificent Seven” megacaps tumbled nearly 3%, with Nvidia Corp. and Tesla Inc. leading losses. Auto stocks took another dive, with Ford Motor, General Motors and Stellantis all lower, with tariffs exacerbating worries over the impact on global trade and hits to industry profits.
The Cboe Volatility Index jumped above 24 — topping the 20 level that starts to raise concerns for traders — and investors piled into havens like US government bonds and gold, which rose to a new record high above $3,100 an ounce.
“This is upsetting, scary and it’s exhausting,” Ivan Feinseth, chief investment officer at Tigress Financial Partners, said in a phone interview. “There’s so much uncertainty on tariffs and everyone is pessimistic about what all of this will mean for the economy, corporate profits and unemployment.”
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