US stocks dumped as recession fears ramp higher
Monday was a “sell everything” day in US markets, with stocks, bonds, and currency all taking it on the chin. Traders seemingly ratcheted their views on recession risk higher as more prominent economists warned of a US downturn, and they also reacted to escalating critiques of Fed Chair Jerome Powell by President Donald Trump. The president reportedly met with executives from retail giants Walmart, Target, and Home Depot, among others, to get intel on what tariffs are doing to their business outlooks.
Stocks managed to recover from their lows of the day in the last hour of trading, with the S&P 500 finishing down 2.4%, the Nasdaq 100 off 2.5%, and the Russell 2000 2.1% lower on the day.
Consumer discretionary, energy, and tech were the worst-performing S&P 500 sectors, and all but consumer staples and materials fell at least 2%.
Nvidia tanked as its earnings estimates start to come under the knife, leaving little appeal for the stock even as it’s become cheap to the S&P 500 relative to history.
Tesla, which reports earnings on Tuesday, tumbled following a report from Reuters that the electric vehicle company’s lower-cost Model Y is being delayed once again.
Netflix, which reported strong earnings after the close last Thursday, managed to hold on to some gains amid a host of analysts upping their price target on the stock, thinking it can weather any negative lurch in the economy.
Uber declined after being sued by the Federal Trade Commission, which alleges that the ride-hailing service deceived customers and made it difficult to cancel its subscription service.
Boeing fell on the heels of reports from Reuters that jets sent to China have been returned to sender.
