Black Monday strikes Wall Street, US stocks plunge at open

U.S. stocks tumbled at Monday’s open, mirroring steep losses across global markets as concerns are mounting that the aggressive trade measures could derail global growth and fuel a broader economic downturn.

All three major U.S. indices were down more than 3% in early trading, reflecting continued angst after Trump’s team over the weekend shrugged off the worldwide carnage in markets since his tariff announcement last week.

About 20 minutes into trading, the Dow Jones Industrial Average was down 3.6% at 36,947.62.

The broad-based S&P 500 tumbled 3.5% to 4,897.96, while the tech-rich Nasdaq Composite Index shed 3.7% to 15,017.24.

Bear market confirmed

Equity markets have been in free fall since Trump’s announcement Wednesday unveiling sweeping tariffs on trading partners that were far more impactful than markets expected. The losses pushed Nasdaq into a bear market last week, with the other two indices not far behind. A bear market is defined as a 20% drop from a recent peak.

“In the short term we are very very very oversold and we’re overdue to bounce,” said Adam Sarhan of 50 Park Investments. “In the event that we can’t bounce, that tells us we’re probably going lower.”

Economists point to a rising risk of recession in light of a possible resurgence in inflation and a slowdown in capital investment from businesses unsettled by shifting U.S. policies.

“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” JPMorgan Chase Chief Executive Jamie Dimon said in a letter to investors, concluding that “the recent tariffs will likely increase inflation.”

This week’s calendar includes updates on U.S. consumer prices, as well as earnings from JPMorgan and other large U.S. banks.