U.S. stock markets opened sharply lower on Monday, extending losses from the previous week, as escalating concerns over President Donald Trump’s proposed tariffs raised fears of a global economic slowdown and weakened investor confidence.
The Dow Jones Industrial Average fell by 1,200 points, or 3.2%, in early trading. The S&P 500 dropped 3.4%, entering bear market territory—defined as a decline of 20% or more from a recent high. The tech-heavy Nasdaq Composite also slid 3.96%.
The downturn followed steep losses in global markets, with Asian and European indices experiencing historic declines. The S&P 500, which hit an all-time high on February 19, reached bear market status in less than seven weeks—marking one of the fastest transitions from peak to bear market in history. The fastest on record occurred in early 2020 during the COVID-19 pandemic.
Investor sentiment remains fragile amid fears that Trump’s sweeping tariffs—particularly targeting China and key trade partners—could disrupt global supply chains and dampen U.S. economic growth. The tariffs, part of the administration’s protectionist trade policies, have already sparked retaliatory threats from affected countries, fueling market volatility.
Despite the widespread selloff, some analysts believe a bottom may be near. James Demmert, Chief Investment Officer at Main Street Research, noted that the scale and pace of the recent declines point to panic-driven selling.
“We are getting close to a bottom,” Demmert said. “The fact that stocks have dropped so significantly in these deep intraday moves is a clear sign of indiscriminate and fear-based selling. When this happens, we tend to soon see significant rallies.”
Stocks are now trading at approximately 15 times projected future earnings, a level considered historically inexpensive. Analysts suggest that such valuations could attract bargain hunters and help spark a rebound if investors believe the market is oversold.
Still, the continued turbulence may complicate the message investors are attempting to send to the White House. The market turmoil could pressure the administration to reconsider or moderate its trade stance, potentially opening the door for negotiations with key economic partners.
