4:25pm: Tech selloff
US stocks tumbled on Monday, with the Nasdaq Composite plunging 4% in its worst session in months, as investors grappled with renewed economic fears, policy uncertainty, and steep losses in technology shares.
The Nasdaq shed 728 points to close at 17,468, dragged down by sharp declines in Tesla (-14%), Nvidia (-5%), Apple (-5%), and Meta (-5%). The selloff pushed the index into correction territory, now down 12% from its February highs.
The S&P 500 slid 2.7%, losing 156 points to end at 5,615, while the Dow dropped 2.1%, falling 890 points to 41,912. Losses were broad-based, with industrials and financials among the hardest-hit sectors.
Investors were rattled after President Trump declined to rule out the possibility of a recession during a weekend interview, describing the economy as being in “a period of transition.” His comments, coupled with ongoing trade tensions and inflationary pressures, deepened concerns over slowing growth.
Adding to market jitters, the Nasdaq broke below its 200-day moving average, a technical signal that often prompts further selling.
With volatility elevated and economic uncertainty lingering, investors remain on edge, bracing for potential turbulence in the weeks ahead.
3:30pm: Stocks making moves
Redfin shares surged more than 70% after the fintech company annoucned it is being acquired by Rocket Companies Inc (NYSE:RKT) in a transaction valued at $1.75 billion.
Checkpoint Therapeutics shares added more than 60% after it was revealed the immunology and targeted oncology firm will be acquired by Sun Pharmaceutical Industries.
Tesla shares fell another 8.7% to about $240 amid continued investor concerns about a slowdown in vehicle global sales and CEO Elon Musk’s close ties to the Trump administration.
2:31pm: Bearish pressure
Initial hopes for a market-friendly environment have been undermined by deep uncertainty surrounding trade policies, which investors see as chaotic and inconsistent, said Quasar Elizundia, Expert Research Strategist at Pepperstone.
The imposition of protectionist tariffs, aimed at revitalizing domestic manufacturing, has been poorly executed, creating paralysis in strategic investment. Fears of economic stagnation have also grown due to plans for significant federal workforce reductions and Trump's reluctance to rule out a recession.
Meanwhile, big tech—once a market driver—faces rising competition from China, threatening valuations and North America’s technological edge, Elizundia noted. The Federal Reserve’s response remains a key factor, with potential interest rate cuts on the table, though tariff-related inflation risks could complicate policy decisions.
Ultimately, economic and trade uncertainties have overshadowed initial growth expectations, reinforcing investor concerns that uncertainty itself remains the biggest threat to market stability.
1:26pm: 'Bipolar' markets
The market is shifting rapidly from growth fears to recession concerns, reacting to headlines and short-term data, said Gina Bolvin, President of Bolvin Wealth Management Group.
"The market is bipolar. We’ve gone from animal spirits to what are the odds of a recession from the 10 year flirting with 5% to falling to 4.2, from raising rates in order to slow the too hot too hot economy growing at 3.9% GDP and three weeks later we’re talking about–2.5% GDP with a need for emergency cuts," Bolvin commented.
"Just two years ago we were worried about the regional banking crisis. Last August it was the Yen carry trade. Deep Seek. GDP Now extrapolating January data Now, tariffs."
That said, long-term investors should stay the course, says Bolvin.
"This is a headline driven market; one that could change in an hour."
12:25pm: Selling isn’t over
The Nasdaq continued to lead the declines on Wall Street in the early afternoon, shedding 3.6% at 17,537 points.
The S&P 500 was down 2.3% at 5,638 points while the Dow Jones was down 1.3% at 42,246 points.
“Hopes that Friday’s late bounce for Wall Street would continue into the new week have been dashed as the S&P 500 falls to a six-month low,” IG chief market analyst Chris Beauchamp said.
“Tech stocks continue to lead to the downside as investors, faced with growing policy uncertainty in the US, choose to dump their previous strong performers. Hopes of a bounce had been rising over the weekend, but it looks like the selling isn’t over yet.”
11:12am: Carney is Canada's next PM
Mark Carney has been selected as Canada's next prime minister after winning the Liberal Party leadership contest on Sunday, replacing Justin Trudeau who announced his resignation in January after nearly 10 years in office.
Carney won 85.9% of the votes cast on Sunday.
Carney’s selection comes amid an escalating trade war between Canada and the United States. In his victory speech, Carney said he would stand up to US president Donald Trump and maintain retaliatory tariffs until “the Americans show us respect.”
His tough stance could help the Liberals improve their popularity, according to Swissquote Bank senior analyst Ipek Ozkardeskaya.
“Carney plans to respond to the US tariff attack with retaliatory tariffs but also implement economic reforms that include tax reductions and the promotion of innovation with the goal of reducing dependence on the US,” Ozkardeskaya said.
Ozkardeskaya sees the Canadian dollar gaining against a broadly weaker US dollar if Carney successfully counters the US trade attacks.
“But in the short-run, selling pressure persists, and the BoC is expected to trim rates by another 25bp when it meets this Wednesday,” the analyst said.
10:20am: Week ahead
Investors face a familiar set of concerns this week in markets with a combination of geopolitics, economic data, and Federal Reserve policy influencing sentiment.
The US Consumer Price Index (CPI) for February will be a critical data point this week, with inflation data set to shape expectations for future monetary policy.
Analysts at Bank of America expect that headline and core inflation rose 0.3% month-over-month.
Alongside inflation data, the jobs market remains a critical factor for the Fed’s policy decisions.
Notable earnings this week include Oracle on Monday, Adobe on Wednesday and Dollar General on Thursday.
9.55am: Nasdaq plunges at the open
US stocks plummeted at the open on Monday, with selling of tech stocks and consumer companies.
The S&P 500 fell 1.3% but the Nasdaq plunged 2.05%, while the Dow Jones lost 0.7% and the Russell 2000 dropped 1.3%.
On the Nasdaq, all but three of the top 20 largest stocks were in the red in early trading.
Bitcoin investor MicroStrategy Inc led the decline, down 9.3% as cryptocurrency struggles continued over the weekend.
Tesla dropped 5.9% and Palantir Technologies Inc fell 5.8%, while Apple and Alphabet both dropped over 3%.
8am: Nasdaq and S&P 500 set to slide as China launches tariffs
US shares are set to open sharply lower on Monday as investors factor in various concerns and risks.
Ahead of the opening bell, S&P 500 futures were down 1.4%, while in between a 1.65% decline for Nasdaq 100 futures and 1.2% for both the Dow Jones and small cap Russell 2000.
Among individual stocks, Nvidia, Tesla and Palantir were all down more than 2% in premarket trading.
Last week finished on a positive note, but over five days all four indices retreated, led by a 4.1% for the Russell, 3.5% for the Nasdaq, 3.1% for the S&P 500 and 2.4% for the Dow.
The dollar is down to lows last seen in early November, though has clawed back some losses, after Federal Reserve chair Jerome Powell said on Friday that the central bank did not need to cut rates rapidly due to a weakening US economy.
Powell expressed confidence that the US economy was still strong and that inflation risks meant that the Fed had to remain vigilant.
Uncertainty over tariffs was cited by many market observers as weighing on the market's mood into the new week.
Today sees China's retaliatory tariffs begin on around $22 billion of US agricultural exports, including a new 10% tariff on US soy beans, which last year saw $12 billion of goods sold by US farmers, along with beef, pork and seafood. A new 15% levy has been applied to chicken, corn and cotton, worth an estimated $3 billion.
President Trump, in a weekend interview with Fox News, refused to be drawn on the possibility of a recession this year but said that it was a time of "transition", echoing some of Powell’s comments from Friday.
"It’s difficult to pinpoint the main catalyst for this morning’s sell-off, but there are several possible factors," said market analyst David Morrison at Trade Nation, witjh uncertainty surrounding tariffs the chief one.
"The President appears to be taking a scatter-gun approach in terms of targets, while teasing the markets with last minute reprieves, delays or softening in scope. All-in-all, it’s proving difficult to price all this in.
"Powell alluded to this in a speech on Friday. But he repeated his view that the Fed should remain patient and be in no rush to cut rates further until they had more clarity over inflation and other economic indicators.
Amid ongoing concerns over the US economy, Morrison said Friday’s non-farm payrolls were "relatively benign" but inflation remains well above target, yet bond yields have fallen and forecasts for US growth have been downgraded sharply for the rest of the year.