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Stocks dropped on Monday as the selling pressures that dragged Wall Street last week persisted, with investors worried about an economic slowdown after President Donald Trump didn’t rule out a recession with U.S. tariffs being implemented.The Dow Jones Industrial Average dropped 814 points, or 1.9%. The S&P 500 shed 2.8%, and the Nasdaq Composite lost 4.3%. Both the 500-stock S&P and tech-heavy Nasdaq dropped to their lowest levels since September 2024.The Nasdaq was weighed down by declines in the “Magnificent Seven” cohort. Tesla tumbled 13%, while Alphabet, Meta and AI darling Nvidia lost around 5%.Stocks have been under pressure as investors fret over a possible recession due to tariffs implemented by the Trump administration. Part of the concern is that these levies could drive prices higher, thus making it harder for the Federal Reserve to lower rates. In an interview that aired Sunday, Trump responded to a question on Fox News about the possibility of a recession by saying the economy was going through “a period of transition.”“We are in the throes of a manufactured correction. I say manufactured because it’s really based in response to the new administration’s tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy. Now, with people talking about potential recession, I think it’s just adding to investor concern,” said Sam Stovall, chief investment strategist at CFRA Research. “Right now we’re going through a typical pullback and probably will experience a mild correction before all is completed, which actually would be good for the resetting of the dials of this ongoing bull market.”Last week, the S&P 500 lost 3.1% for its worst weekly mark since September. The Dow fell 2.4%, while the Nasdaq shed 3.5%. Over the past month, the S&P 500 and Nasdaq are down 6% and 9%, respectively, while the Dow is down 4.5%.The turbulence could continue this week, with a heavy dose of economic data adding to the list of potential market-moving events. On the inflation front, the February consumer price index, or CPI, release is slated for Wednesday, followed by the producer price index, or PPI, on Thursday. Stovall said that he is optimistic heading into both of these readings.“What actually could be encouraging to investors is that the Street and our economists are forecasting more favorable readings in both headline and core CPI, and it looks as if ditto for PPI. With the inflation situation cooling off, then that would go a long way in helping to calm investors nerves.,” he said. “The market is approaching an oversold level currently, and so any kind of could good news could trigger at least a counter-trend rally, right? I guess the question then is, is that short term — do we then go back into a decline — or is it just a signal that the worst is over? I think we just have to wait and see.”Correction: The CBOE Volatility Index (VIX) hit its highest level since December 2024. The Dow at one point was down 325 points or 0.8%. An earlier version misstated the percentage.RBC Capital Markets’ Lori Calvasina foresees a potential drawdown ‘in the 14% to 20% range’Recessionary fears have risen in recent weeks on the back of softening economic data and President Donald Trump’s new economic tariffs. Now, RBC Capital Markets’ Lori Calvasina believes that the market could potentially plummet as much as 20%.“The risks of our bear case have risen … we thought the market would end the year at 6,600 but have a 5% to 10% drawback during the course of the year that it would bounce back from. I do think the risks now are rising that we get something worse than a 10% drawdown — something, say, in the 14% to 20% range,” Calvasina, the firm’s head of U.S. equity strategy, said on CNBC’s “Squawk Box” on Monday morning.— Lisa Kailai HanTesla is now down more than 50% from its recent high Tesla shares are down more than 50% from their 52-week high, as the electric vehicle maker’s losing streak after CEO Elon Musk joined the Trump administration continues. The stock was last off its recent high by more than 53%. Tesla, which has lost more than $800 billion in market cap since the stock peaked at roughly $480 on Dec. 17, has been hurt by Musk’s increasingly controversial political profile.One Wall Street analyst worries that recent reports of vandalism against Tesla dealerships and vehicles could dampen demand for the stock. Reports of vandalism have come in from across the country, including repeated fires set at a Tesla dealership in Colorado, according to NBC News.“When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent Musk might think twice about buying a Tesla,” Baird analyst Ben Kallo said on CNBC’s “Squawk on the Street.” Other Wall Street firms have soured on the automaker. UBS and Redburn Atlantic reiterated their sell ratings on Tesla ahead of the company’s April delivery report and first-quarter results, citing sluggish Model Y delivery forecasts and a lack of near-term growth catalysts.— Sarah Min, Jesse Pound, Pia Singh Citi says AppLovin’s shares could more than doubleAppLovin‘s recent slump has provided investors with a buying opportunity, according to Citi.The mobile technology company’s stock has been hit by bearish reports from short sellers, as well as the broader market rout. The company was also excluded in the latest additions to the S&P 500.Analyst Jason Bazinet said peer multiples suggest the market is attributing a 50% chance that AppLovin’s stock is worth $0 and called the sell-off “extreme.” He reiterated his buy rating and $600 price target, which implies 122% upside from Friday’s close.Bazinet pointed to the “solid start” of the company’s eCommerce pilot, which generated $100 billion of revenue in the fourth quarter, according to recent disclosures. In addition, the company may have bought back $500 million of its stock in the first two months of the first quarter, and could buy back as much as $1.2 billion in the quarter, Bazinet said in a note Sunday.“We suspect AppLovin will use the recent dislocation in the share price to retire more shares, paving the way for additional value creation for long-term investors,” he wrote.Shares were down 10% on Monday.— Michelle FoxIndex of ‘fear and greed’ hits lowest point in more than a yearOne measure of fear and greed in the market is flashing warning signs.CNN’s Fear and Greed Index hit 16 on Monday, placing it in the “extreme fear” zone. That marks the closely watched sentiment gauge’s lowest reading in more than a year.The latest index data also underscores the rapid decline in investor confidence. The index sat in “neutral” territory just one month ago and was in the “greed” zone a year ago.— Alex HarringBCA Research downgrades stocks, cites tariffs and DOGEAggressive tariffs and federal spending cuts spearheaded by the so-called Department of Government Efficiency could tip the U.S. economy into a recession, according to BCA Research, which downgraded equities due to this negative backdrop.“We think that the uncertainty engendered by DOGE and tariffs will provide the nudge to tip it into a recession and are tactically downgrading equities to underweight and upgrading fixed income and cash to overweight,” BCA strategists led by chief U.S. investment strategist Doug Peta wrote in a note to clients.— Yun LiRobinhood, Strategy among the names making midday movesHere are some stocks making big moves in midday trading:Bank stocks — Major banks came under pressure during Monday’s session amid rising concerns about a potential slowdown in the U.S. economy. JPMorgan Chase and Goldman Sachs fell roughly 4%. Citigroup slid more than 4%, and Wells Fargo dropped 5%. Bank of America shed more than 2%, and Morgan Stanley declined more than 5%.Robinhood — Shares of the financial services platform plunged more than 14% on the heels of Finra saying on Friday that it has ordered Robinhood to pay almost $30 million in restitution to customers. The self-regulatory organization also fined Robinhood Financial and Robinhood Securities $26 million, alleging a failure to “establish and implement reasonable anti-money laundering programs,” among other issues.Crypto-related names — Bitcoin slid 3% in midday trading as investors fled speculative corners of the market. Stocks tied to cryptocurrencies also fell, with crypto exchange Coinbase losing 10% and bitcoin proxy Strategy shedding 13%. Read here for the full list.— Sean ConlonNasdaq Composite tumbles 12.8% since February high less than three weeks agoThe Nasdaq Composite at Monday’s lows was down 13.3% from the all-time closing high back on Dec. 16, 2024, but perhaps more worryingly, was 12.8% below the February closing high reached less than three weeks ago on Feb. 19.The S&P 500 at Monday’s low of 5,638.84 was down 8.22% from its Feb. 19 all-time closing high of 6144.15, while the Dow Jones Industrial Average at Monday’s low of 42,275.56 was off 6.1% from its all-time high in early December and lower by 5.8% from its closing high in early February of 44,873.28.— Scott SchnipperVolatility hits highest level since DecemberVolatility on Wall Street rose to its highest level since December on Monday, as investors continue to assess the effects of tariffs on the U.S. economy.The CBOE Volatility Index, or VIX, was last more than 10% higher at 25.93. That is the highest level since Wall Street’s fear gauge hit 27.62 at the end of 2024.— Brian EvansCrypto ETFs register fourth consecutive week of outflowsCrypto investment products have registered their fourth week in a row of outflows. According to CoinShares data, crypto funds saw $867 million in outflows last week, bringing its total outflows during the four-week period to $4.75 billion.Most of the bearishness came from the U.S., where investors pulled out $922 million last week. Other regions, particularly Switzerland, Canada and Germany, saw a buying opportunity.In the U.S., Fidelity’s FBTC led the outflows, followed by BlackRock’s IBIT, Ark 21 Shares’ ARKB and Grayscale’s GBTC.Blockchain-focused equity funds also suffered from the negative sentiment. Overall, they saw $48 million in outflows last week. Most of that came from the SPDR Galaxy Hedged Digital Asset Ecosystem ETF with outflows last week of $32.3 million.— Tanaya MacheelHousehold financial outlook hits multiyear lows, New York Fed survey showsBrandon Bell | Getty ImagesCustomers shop for produce at an H-E-B grocery store in Austin, Texas, on Feb. 12, 2025.Consumers’ outlook for inflation changed surprisingly little in February despite widespread tariff worries, though they grew more worried about being able to pay their bills, according to a New York Federal Reserve survey released Monday.Median inflation expectations rose just 0.1% for the year ahead to 3.1%, while there was no change at the three- and five-year horizons. The results counter other surveys that show inflation angst on the rise.At the same time, the perceived likelihood of missing a minimum debt payment over the next three months rose to 14.6%, a 1.3 percentage-point increase and the highest level since April 2020, during the early days of the Covid-19 pandemic. Similarly, the share of households expecting a worse financial situation in a year increased to 27.4%, the highest since November 2023.— Jeff CoxS&P 500 falls back below 200-day moving averageThe S&P 500 has once again fallen under its 200-day moving average and is also trading below its worst level on Friday.The index did manage to rally on Friday to close above its the 200-day moving average, which sits at about 5,733, but market technicians would consider it a warning if the S&P 500 cannot make the same rally today.“The risk-off rotation last week dragged the S&P 500 below support off the January lows (5,773) and into the 200-day moving average (dma) at 5,733. A break below this closely watched support level would raise concerns over a potential top being made and leave 5,703 (October low) and the 5,665-5,667 range (key Fibonacci retracement level/July highs) as the next areas of downside support,” Adam Turnquist, chief technical strategist for LPL Financial, said in a note.— Jesse PoundTech-software ETF hits lowest level since OctoberDuring Monday’s trading session, the iShares Expanded Tech-Software Sector ETF (IGV) fell 3.5%, hitting its lowest level since October.The exchange-traded fund was led to the downside by crypto-related names such as Cipher Mining, down 17%, alongside Strategy and TeraWulf, both down 14%.— Gina Francolla, Lisa Kailai HanConsumer staples stocks outperform in potential risk-off moveConsumer staples stocks pushed higher in morning trading, a sign of a potential shift toward defensive plays after last week’s market sell-off.Shares of Procter & Gamble rose 1%, and Unilever jumped 2.4%. The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.6% even though retailers such as Costco and Walmart were under pressure.Another defensive stock outperforming on Monday was Johnson and Johnson, climbing 1.2%.— Jesse PoundStocks open lower to start new trading weekStocks opened lower to kick off the new trading week.The Dow Jones Industrial Average dropped 400 points, or 1%. The S&P 500 slipped 1.4% and the Nasdaq Composite shed 2%.— Lisa Kailai HanNatural gas futures surge to highest since December 2022April natural gas futures climbed to $4.901 per million BTUs Monday, the highest since late December 2022. In early trading, Expand Energy added 2%, Antero Resources, Conoco Phillips and California Resources rose about 1% and Coterra Energy advanced 0.5%, outperforming in a down market.Nat gas prices posted their best week in two months last week, boosted by colder-than-usual weather patterns and concerns about refilling storage tanks ahead of the usual summer pickup in demand, Reuters said late last week.— Scott Schnipper, Gina FrancollaStocks making the biggest moves premarketCheck out some of the companies making headlines in premarket trading:Tesla — The electric vehicle company slipped nearly 3%, continuing its recent slide. Tesla is now on the cusp of erasing its postelection gains.Bank stocks — Shares of major banks were under pressure Monday as worries over a possible U.S. economic slowdown weighed on them. JPMorgan Chase dropped more than 1% along with Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs.DoorDash, Coinbase — The stock added nearly 3% on news that the food delivery company will join the S&P 500 effective March 24. Coinbase, meanwhile, shed 5% after being snubbed for inclusion in the index. Read the full list here.— Brian EvansTesla shares fallPatricia De Melo Moreira | Afp | Getty ImagesPeople gather in a protest outside a Tesla dealership in Lisbon against Tesla and SpaceX CEO Elon Musk on March 9, 2025.Tesla shares are down again in the premarket, close to giving up its postelection gain as it extends its losing streak.The electric vehicle maker has slid for seven straight weeks, after CEO Elon Musk joined the Trump administration, closing Friday at $270.48. It is the longest such losing streak for Tesla in its 15 years as a public company.Tesla shares finished the week down more than 10%, at their lowest level going back to Nov. 5, Election Day, when they closed at $251.44. Since the stock peaked at almost $480 on Dec. 17, Tesla has lost well over $800 billion in market cap.— Lora Kolodny, Sarah MinTrump’s tariffs could constrain U.S. economic growth but spur fiscal expansion overseas, Alpine Macro saysKevin Lamarque | ReutersU.S. President Donald Trump speaks to reporters as White House Press Secretary Karoline Leavitt stands by him aboard Air Force One on his return to Washington, D.C., on March 9, 2025.President Donald Trump’s new tariffs have the capacity to completely change modern global relations as we know them, research firm Alpine Macro wrote in a Monday note.“The bull market in stocks is entering a volatile, risky, and potentially dangerous phase. The initial euphoria over Trump’s pro-growth policies is being overshadowed by rising concerns over his tariff threats,” said Chen Zhao, the firm’s chief global strategist. “America’s trade policy and geopolitics are undergoing paradigm shifts that will not only reshape the global economic order but also impact income growth, corporate profits, and the financial market outlook.”Zhao elaborated that current paradigm shifts include a new fiscal expansion proposal in Germany and an increase in fiscal stimulus from the Chinese government to boost domestic demand.“The bottom line is that it is reasonable to assume that Trump’s tariff war and policy uncertainty will weaken sales, trim corporate profits, hurt risk assets, and weaken GDP growth,” he wrote. “The impact of Trumpism is still unfolding, but his trade policies are inadvertently spurring fiscal expansion in the rest of the world. Ironically, the tariff war could provide a positive impetus for economic growth in the rest of the world, although it will constrain U.S. economic expansion for a while.”The strategist added that in terms of portfolio allocation, investors should reduce their exposure to U.S. equities in favor of European and emerging market stocks.— Lisa Kailai HanBig bank stocks fall on worries around economyReutersA combination file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.Shares of major banks were under pressure Monday as worries over a possible U.S. economic slowdown weighed on them. JPMorgan Chase dropped more than 1% along with Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs.— Fred ImbertNvidia slides in premarket tradingNvidia slid about 2% before the bell on Monday, putting downward pressure on the broader market.Monday’s move comes amid a pullback for the megacap tech stock, which has become a favorite of retail investors due to its status as an artificial intelligence leader.After two years of monster gains, the stock has tumbled about 16% in 2025. A sizable chunk of those losses came last week, when shares slid more than 9%.— Alex HarringAsia-Pacific markets mixed after volatile trading week; Japan’s 10-year bond yield hits fresh high Asia-Pacific markets were mixed on Monday after a volatile trading week around the world.Investors were particularly keeping a watch on the shares of steel manufacturers ahead of the U.S.’ 25% tariffs on steel and aluminum imports, which will kick off Wednesday.Japan’s benchmark Nikkei 225 led gains in Asia, rising 0.38% in choppy trade, to end the day at 37,028. The broader Topix index, meanwhile, fell 0.29% to close at 2,700, paring earlier gains.South Korea’s Kospi added 0.27% to end the day at 2,570, while the small-cap Kosdaq fell 0.26% to 725.Australia’s S&P/ASX 200 rose 0.18% to end the day at 7,962, after closing at a six-month high in its previous session.Mainland China’s CSI 300 dropped 0.39% to end the day at 3,928.80, while Hong Kong’s Hang Seng Index slipped 1.83% in its last hour.Over in India, the benchmark Nifty 50 was trading 0.27% higher, while the BSE Sensex climbed 0.24% as of 1:10 p.m. local time.— Amala BalakrishnerFutures extend lossesThe initial losses for equity futures have widened in the opening hour of trading. Nasdaq 100 futures are leading the downward move, now off by about 1%.— Jesse PoundStocks suffered losses last weekWall Street is coming off a negative week for stocks.The S&P 500 fell 3.10% for its worst weekly performance since September.The Nasdaq Composite fell -3.45% for the week.The Dow fell -2.37% for the week, its second negative week in three.The small cap Russell 2000 fell -4.05%, its worst weekly performance since December. — Jesse Pound, Christopher HayesDoorDash and Williams-Sonoma are set to join S&P 500Avishek Das | Lightrocket | Getty ImagesFour new stocks are joining the S&P 500 in the index’s quarterly shake-up.S&P Dow Jones Indices announced Friday evening that DoorDash, Williams-Sonoma, TKO Group Holdings and Expand Energy are joining the index.In an offsetting move, Borgwarner, Teleflex, Celanese Corporation and FMC Corporation are getting demoted from the index.Since the S&P 500 is tracked closely by massive index funds, change can trigger large amounts of trading and move stock prices.The changes will become effective prior to the open of trading on March 24.— Jesse PoundFutures open lowerU.S. stock futures fell when trading resumed Sunday evening, with Dow futures sliding more than 100 points.— Jesse Pound
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