Wall Street suffers strong drop due to fears on US economy and Trump statements

The fear that tariffs and layoffs in the federal government deteriorate growth in the largest economy of the world prolonged a period of three weeks of volatility in world markets. US actions are aimed at their worst drop of 2025, as Wall Street moderates the upward perspectives, while the demand for shelters against a recession drives sovereign bonds in the United States and Europe.

The New York Stock Exchange fell strongly this Monday, with caution investors before the publication of the inflation index on Wednesday, and restless for the commercial war launched by Washington.

The Nasdaq 100 sank 3%, while the S&P 500 extended to 8% a drop from a record. This after erasing all the accumulated profits since Donald Trump was elected president thanks to what Wall Street considered his agenda “procretion” The yields of the reference treasure bonds collapsed before the bets that an economic deceleration would force the Federal Reserve to cut the fees. The US country risk shot and more than 10 high -qualification companies delayed bond sales.

From the start of the day, Wall Street continued on the descending path that characterized last week.

President Donald Trump’s statements on the weekend did not help markets either.

Trump declined, in an interview released on Sunday, predict whether or not there will be recession in the United States this year.

“I hate predicting things like those”, He told Fox News, which consulted him directly about a possible recession in the US economy in 2025.

“There is a transition period, because what we are doing is very large. We are bringing the wealth back to the United States”He said. “Take a little time”, Added the republican president.

Trump’s Secretary of Commerce, Howard Lutnick, was more forceful when asked on Sunday about this possibility of economic contraction.

“Absolutely not”, He replied to the NBC television program“ Meet the Press ”when they consulted him if the Americans had to wait for a recession.

Analysis

“President Trump has redoubled his commitment to current policy and recognized the possibility of a deceleration, and that is affecting the feeling”, Said Tom Essaye in The Sevens Report.

A series of Wall Street strategists warn about greater volatility of the actions, and Michael Wilson, by Morgan Stanley, is the last to give the alarm about concerns about economic growth. Other market analysts, such as those of JPMorgan Chase & Co. and RBC Capital Markets, have also moderated the upward forecasts by 2025, since Trump tariffs fell the fears of a slowdown in economic growth.

“There are always multiple forces in play in the market, but right now, almost all of them are going to the background through tariffs”Said Chris Larkin of E*Trade de Morgan Stanley. “Until there is more clarity in commercial policy, operators and investors must anticipate continuous volatility. ”

Uncertainty

The rise of Trump tariffs and threats against neighbors Canada and Mexico, in addition to China and other countries, plunged American financial markets into a storm and filled consumers with uncertainty.

Wall Street had its worst stock market for the presidential election last November.

The trusted indicators of American consumers in the country’s economy fall, while buyers, already discouraged after years of inflation, wonder if tariffs will increase prices of what they buy.

“Market agents are losing faith in the notion that President Trump will avoid a market drop by reversing their policies, if those policies are the material cause of a fall in the prices of actions”, Summarized Patrick O’Hare, from Briefing.com, in an analysis note.

For Christopher Low, FHN Financial, the fall of the American square is partly explained by Trump’s comments, considered little reassuring, “But also for the news regarding customs rights”

“Chinese tariffs on American agricultural products enter into force“This Monday, and”On the other hand, Mark Carney, appointed head of the Liberal Party in Canada this weekend declared that it would maintain reciprocity measures against the United States”, Said the analyst at the AFP.

Future Prime Minister of Canada, Carney directly attacked Trump and assured in a strong speech that his country will win and “will never be part of the United States, in any way“While Trump does not stop saying that he wants him to become the”State 51″

“We can’t allow Trump to win”, Bodye was warned of Victoria’s speech at Ottawa on Sunday.

“Americans want our country”He added, and stated that Canada must“Build a new economy and create new business relationships”, Regarding strong tensions with the US president.

In a few days, he will assume the position of Justin Trudeau, who announced in January his resignation after ten years in power.

Blow to Tesla

In parallel, the market awaits the IPC index for February in the United States.

“These inflation data are particularly important considering what happens in Washington”Low said.

The fact of not having many data on the period Trump carries in the White House, creates “a really feeling of uncertainty among investors”, He explained.

Among the main losers of the day is Tesla, a pioneer of electric cars founded by a narrow Trump advisor, Elon Musk, which fell more than 8% in Wall Street on Monday, due to loose sales and the generalized decrease in technological values.

Around 15h00 GMT, the company’s titles founded by Musk lost the whopping of 8.87% to US $ 239.51 per paper. In this way, Tesla is worth half of what was worth in December, shortly after the election of Donald Trump, and now its stock market capitalization is US $ 700,000 million.

In addition to Tesla, the other six great technological ones that the market continues to fall hard: Alphabet (-4.06%), Amazon (-2.60%), goal (-3.74%), Apple (-3.97%), Microsoft (-2.22%) and Nvidia (-3.47%) were clearly in red.

Some of the main movements in the markets:

Actions

• The S&P 500 fell 2.1% at 10:46 am New York time
• Nasdaq 100 fell 3.1%
• The Dow Jones Industrial Average fell 1%
• Stoxx Europe 600 fell 1.3%
• The MSCI World index fell 1.9%

Foreign exchange

• The Bloomberg Dollar Spot index records few changes
• The euro remained practically unchanged and stood at US $ 1,0841
• The sterling pound barely records variation and is located at US $ 1,2910
• Japanese yen rose 0.9% to 146.68 per dollar

Cryptocurrencies

• Bitcóin fell 4.3% to US $ 79,510.96
• Ether fell 2% to US $ 2,007.03

Bonds

• The 10 -year treasure bond performance fell nine basic points to 4.21%.
• The 10 -year German bond performance fell two basic points to 2.81%.
• The 10 -year British bond performance fell two basic points to 4.62%.

Raw materials

• The crude West Texas Intermediate fell 0.4% to US $ 66.75 a barrel
• Cash gold records few changes

With information from AFP and Bloomberg