U.S. stocks tumbled on Monday on concerns about the effects of President Donald Trump’s tariffs on economic growth spooked investors.
The Dow Jones Industrial Average fell 961 points, or 2.25%, while the Nasdaq Composite and S&P 500 were down 4.3% and 2.95%, respectively.
Trump on Sunday declined to explicitly rule out a full-blown recession for the U.S. economy this year, telling Maria Bartiromo in a "Sunday Morning Futures" exclusive interview that the country will see a "period of transition" as his policies take effect.
President Donald Trump speaks with members of the media on the South Lawn before boarding Marine One at the White House in Washington, D.C. on Feb. 28. (Reuters/Nathan Howard / Reuters)
"I hate to predict things like that," he said of a recession. "There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing… it takes a little time, but I think it should be great for us."
Financial markets have been volatile in recent weeks as rising trade tensions and signs of slowing U.S. economic growth weighed on consumer confidence and business activity. Richly valued U.S. tech stocks have borne the brunt of the recent selloff on Wall Street.
"The U.S. market sell-off is starting to look ugly," said Dan Coatsworth, an investment analyst at AJ Bell. "Many people have been worried about elevated valuations among U.S. equities for some time and looking for the catalyst for a market correction. A combination of concerns about a trade war, geopolitical tensions and an uncertain economic outlook could be that catalyst."
FOX Business' Taylor Penley and Reuters contributed to this report.