Market Panic: Dow Drops 900 Points Amid Recession Fears

A three-week market sell-off escalated Monday as concerns over tariff policies and economic uncertainty rattled investors. The Dow Jones Industrial Average plunged 890 points (-2.08%) to 41,911.71, while the Nasdaq Composite suffered its worst day since 2022, dropping 4% to 17,468.32. The S&P 500 lost 2.7%, closing at 5,614.56.

The tech sector led the decline, with Tesla tumbling 15%—its worst session since 2020. Alphabet and Meta slid over 4%, while Nvidia lost 5%. Palantir dropped 10% as investors shifted toward safer assets. Market volatility surged, with the Cboe Volatility Index hitting its highest level since December.

Fears of a recession grew after Treasury Secretary Scott Bessent warned of a "detox period" as government spending is reduced. President Trump called the economic downturn a "transition," downplaying market concerns. Goldman Sachs lowered its growth forecast, citing potential tariff effects.

Despite the turmoil, defensive stocks like Mondelez and Johnson & Johnson saw slight gains, providing a rare bright spot in an otherwise brutal trading session.