Reuters reported that President Donald Trump’s trade policy has scared investors of a possible economic downturn, causing the stock market to lose $4 trillion from the peak of the S&P 500 last month.
The wave of new presidential decisions has caused uncertainty for businesses, consumers, and investors, especially due to customs disputes with Canada, Mexico, and China.
The S&P 500 has already lost 8.6% from its February 19 record, and a 10% drop would mean an official market correction. The tech Nasdaq has fallen by more than 10% from its December high.
The selloff intensified on Monday, with the S&P 500 index falling 2.7%, the biggest daily drop this year. The Nasdaq lost 4%, its worst performance since September 2022.
Trump refused to predict whether the US would enter a recession despite investor concerns about his trade policy.
Investors are also closely watching whether Congress can pass a budget and avoid a partial government shutdown. An important inflation report will be released on Wednesday.
