S&P 500 Sees Wild Swings After Approaching Bear Market Territory
Global financial markets plunged deeper into the red Monday, as mounting concerns over President Donald Trump‘s escalating trade war triggered fresh anxiety about the future of the global economy.
The S&P 500 nosedived 4% in early trading, and then swung back rapidly to reclaim some of the early losses. This followed its worst weekly performance since the early days of the COVID-19 pandemic in March 2020. The benchmark index—closely tied to the retirement savings of millions of Americans through 401(k) plans—has now shed around 20% from its recent record high set just weeks ago.
If the S&P 500 finishes the day below that mark, it will enter a “bear market.” This is the term for a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something much more vicious.
Hong Kong Stocks Suffer Worst Plunge Since 1997
The financial pain rippling through global markets intensified Monday, with investors fleeing risk amid growing fears that trade tensions and slowing growth could derail the world economy.
In Hong Kong, stocks suffered a staggering 13.2% crash—their worst single-day drop since the 1997 Asian financial crisis—underscoring the mounting unease in global financial hubs.
Jamie Dimon Issues Recession Warning
JPMorgan Chase CEO Jamie Dimon issued a stark warning earlier on Monday about the potential fallout from escalating trade tensions, cautioning that a global trade war could push the U.S. economy into recession, fuel inflation, and strain key international alliances.
In his closely watched annual letter to shareholders, published Monday, Dimon pointed to new tariffs announced last week by Trump as a source of economic risk. He said the measures “will likely increase inflation and are causing many to consider a greater probability of a recession.”
Trump Shrugs Off Market Turmoil
Speaking to reporters aboard Air Force One on Sunday, Trump struck a defiant tone amid deepening market losses, insisting he doesn’t want to see stocks fall—but brushing off the sell-off as necessary growing pains. “Sometimes you have to take medicine to fix something,” Trump said, suggesting the short-term pain is part of a broader strategy.
While markets reel from rising trade tensions, some investors are clinging to hope that the president might scale back tariffs in upcoming negotiations. Trump hinted at that possibility, saying several world leaders are “dying to make a deal.” A quick rollback of tariffs could provide a much-needed boost to the economy and stave off a potential recession—but for now, that outcome remains far from guaranteed.
Trump has repeatedly defended his aggressive trade stance, arguing that it’s part of a long-term push to revitalize American manufacturing. On Sunday, he reiterated that goal, saying he wants to narrow the trade deficit by reducing the massive gap between what the U.S. imports and exports—a shift that could take years to materialize.