Stock futures fall on Sunday evening after S&P 500's worst week since September: Live updates

A three-week market sell-off intensified on Monday, with investors worried that tariff policy uncertainty would tip the economy into a recession, something President Donald Trump did not rule out over the weekend in an interview.

The S&P 500 shed 2.7%, touching its lowest level since September at one point and closing at 5,614.56. The tech-heavy Nasdaq Composite saw the sharpest decline of the major averages, falling 4% for its worst session since September 2022 and closing at 17,468.32. The Dow Jones Industrial Average dropped 890.01 points, or 2.08%, ending at 41,911.71.

The S&P 500 is off 8.7% from its all-time high reached Feb. 19, and the Nasdaq Composite is off nearly 14% from its recent high. A 10% decline is considered a correction on Wall Street.

The losses worsened as the day went on, but the major averages came off their session lows just before the close.

The “Magnificent Seven” cohort, once the stars of this bull market, led the declines Monday as investors dumped the group for perceived safer plays. Tesla tumbled 15% for its worst day since 2020, while Alphabet and Meta fell more than 4%. Artificial intelligence darling Nvidia lost 5%. Palantir, another once-loved stock by retail traders, was down 10%.

Worries have been increasing about the economy over the past month, sparked initially by some soft data that appeared to be in reaction to the tariff policy back-and-forth and then fueled further by some recent comments by the White House.

Treasury Secretary Scott Bessent on Friday told CNBC that there could be a “detox period” for the economy as the new administration cuts government spending. Then in an interview that aired Sunday, President Trump responded to a question on Fox News about the possibility of a recession by saying the economy was going through “a period of transition.”

“What I have to do is build a strong country,” Trump said. “You can’t really watch the stock market.”

Goldman Sachs slashed its economic growth forecast in recent days because of the potential tariff effects.

“We are in the throes of a manufactured correction,” said Sam Stovall, chief investment strategist at CFRA Research. “I say manufactured because it’s really based in response to the new administration’s tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy.”

Signs of investors taking off risk were evident everywhere on Wall Street. The Cboe Volatility index, a measure of trader fear, jumped to the highest since December. Bitcoin tumbled back below $80,000 and Treasury yields declined.

The declines in the S&P 500 would have been worse were it not for a rotation into some more defensive areas of the market that have steady revenue and pay a dividend. Mondelez and Johnson & Johnson ended the day slightly higher.

Stocks tumble to start second trading week of March

The S&P 500 plummeted on Monday, continuing a three-week sell-off.

The broad market index slipped 2.7%, finishing at 5,614.56. The Dow Jones Industrial Average shed 890.01 points, or 2.08%, closing at 41,911.71. The Nasdaq Composite tumbled 4% and ended at 17,468.32.

— Lisa Kailai Han

There’s irony in foreign markets outperforming U.S. equities, Oppenheimer says

Oppenheimer Asset Management believes investors may be disproportionately rewarding ex-U.S. assets in the wake of President Trump’s new tariffs.

“Ironically, since the beginning of the year, foreign markets around the world and particularly in Europe are outperforming the U.S. equity markets as the world frets over the potential effects of tariffs should they be broadly deployed by the Trump Administration,” wrote chief investment strategist John Stoltzfus. “We see some irony in the recent outperformance by foreign markets over the U.S. markets. In our view, foreign companies in Europe, Asia, and Latin America are likely to suffer even more from deployment of tariffs than companies in the U.S.”

— Lisa Kailai Han

Semiconductor stocks falling below their August lows heightens economic anxiety, Nomura says

Concerns about the state of the economy could “strengthen further” if U.S. semiconductor stocks fall below their August 2024 low, Nomura strategist Naka Matsuzawa wrote Monday.

In late trading Monday, the PHLX Semiconductor Sector index was below its August 7, 2024, close of 4,426.27 but above its August 2024 intraday low of 4,290.35.

The VanEck Semiconductor ETF, dominated by Nvidia but home to 25 other chip stocks as well, was faring better, trading slightly above the August 2024 closing low of 211.47 and the August 2024 intraday low of 200.49.

— Scott Schnipper

U.S. shifts to ‘Muck-Around-and-Find-Out’ policy, economist says

Recent economic commentary from U.S. officials has raised red flags for TS Lombard economist Dario Perkins.

“I’m not turning bearish. I’m not even forecasting a recession,” Perkins wrote to clients Friday. “But it is odd to see US policymakers talk as if they want to inflict damage on the economy, or at least do things that risk causing damage.”

Perkins called the combination of tariff policy and the push to slash federal government spending “dangerous.” He said this marks a shift from the “whatever-it-takes” policy that markets have become used to.

“This is something new,” he said. “It is Muck-Around-and-Find-Out policy, to use the polite term.”

— Alex Harring

Palantir declines 10% as investors dump onetime favorite

Palantir dropped more than 10% on Monday as the latest cult stock showed signs of sputtering out.

The defense tech stock is now within striking distance of its flatline for 2025. That marks a turn after shares surged more than 340% last year, making it the top S&P 500 performer.

Palantir has become a favorite of retail investors in recent months. Part of that optimism is tied to the quirky persona of CEO Alex Karp, who often directly addresses mom-and-pop traders.

The stock shot up following President Trump’s victory in November. Some pointed out that Peter Thiel, who co-founded of PayPal with billionaire entrepreneur Elon Musk, has chaired Palantir’s board for more than two decades.

— Alex Harring

Tariffs will temporarily boost inflation, putting a May or June rate cut at risk, according to Morgan Stanley

The new Trump administration’s tariff policies could potentially push off any rate cuts expected by the middle of this year, according to Morgan Stanley.

“Tariffs have been enacted faster and more aggressively than we had assumed. Our base case that only China would have meaningful, lasting tariffs is still possible, given the back and forth with Mexican and Canadian tariffs. But now we think the effects of tariffs will come sooner and be somewhat larger,” wrote chief global economist Seth Carpenter. “Tariffs are inflationary, albeit temporarily, so our expected cut by the Fed in May or June could be at risk, but the next couple of months will see falling inflation. But cuts in 2026 look even more likely, as the inflationary impulse could ebb sooner, and the growth slowdown could be bigger.”

He added: “The timing remains uncertain, but all of these policies would skew negative for growth does now seem to be more accepted by markets. Recent market moves are consistent with this view, but some of the market reaction to soft data was likely overdone, in our view.”

— Lisa Kailai Han

UBS Global Wealth Management sees the S&P 500 rising 14% by year-end

UBS CIO Global Wealth Management believes a solid fundamental backdrop could boost the S&P 500 14% by December, despite near-term market uncertainty.

“We anticipate further volatility amid tariff concerns, but we continue to expect gains for the S&P 500 and see the index reaching 6,600 by year-end,” wrote David Lefkowitz, the division’s head of U.S. equities. Lefkowitz’s prediction of 6,600 for the S&P 500 is approximately 14% above where the benchmark closed on Friday.

“We believe a solid U.S. economy, healthy corporate earnings growth, and further advancements in AI should support the rally,” he added.

— Lisa Kailai Han

Nasdaq heads for worst day since 2022

The Nasdaq Composite tracked for its worst day in more than two years as investors dumped technology stocks.

The tech-heavy index tumbled more than 4% in the session. If that holds, it would mark its biggest one-day loss since Sept. 13, 2022, when it plunged more than 5%.

With the declines, the Nasdaq traded at its lowest level going back to September 2024.

MicroStrategy was the worst performer in the concentrated Nasdaq 100 in afternoon trading, sliding more than 17%. Tesla followed with a drop of more than 14%.

Every member of the “Magnificent Seven” saw steep losses in the session. Nvidia, Alphabet, Meta Platforms and Apple all slid more than 7%.

— Alex Harring

ARKK on pace for worst day since June 2022

Cathie Wood’s flagship ARK Innovation ETF (ARKK) slid nearly 9% Monday, on pace for its worst day since June 13, 2022.

The sell-off in the ETF was driven by a 14% decline in Tesla, ARKK’s biggest holding with a 10.5% weighting. The fund has lost 25% of its value since its 2025 high.

— Yun Li

RBC Capital Markets’ Lori Calvasina foresees a potential drawdown ‘in the 14% to 20% range’

Recessionary fears have risen in recent weeks on the back of softening economic data and President Trump’s new economic tariffs. Now, RBC Capital Markets’ Lori Calvasina believes the market could potentially plummet as much as 20%.

“The risks of our bear case have risen … we thought the market would end the year at 6,600 but have a 5% to 10% drawback during the course of the year that it would bounce back from. I do think the risks now are rising that we get something worse than a 10% drawdown — something, say, in the 14% to 20% range,” Calvasina, the firm’s head of U.S. equity strategy, said on CNBC’s “Squawk Box” on Monday morning.

— Lisa Kailai Han

Tesla is now down more than 50% from its recent high

Tesla shares are down more than 50% from their 52-week high, as the electric vehicle maker’s losing streak after CEO Elon Musk joined the Trump administration continues. The stock was last off its recent high by more than 53%.

Tesla, which has lost more than $800 billion in market cap since the stock peaked at roughly $480 on Dec. 17, has been hurt by Musk’s increasingly controversial political profile.

One Wall Street analyst worries that recent reports of vandalism against Tesla dealerships and vehicles could dampen demand for the stock. Reports of vandalism have come in from across the country, including repeated fires set at a Tesla dealership in Colorado, according to NBC News.

“When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent Musk might think twice about buying a Tesla,” Baird analyst Ben Kallo said on CNBC’s “Squawk on the Street.”

Other Wall Street firms have soured on the automaker. UBS and Redburn Atlantic reiterated their sell ratings on Tesla ahead of the company’s April delivery report and first-quarter results, citing sluggish Model Y delivery forecasts and a lack of near-term growth catalysts.

— Sarah Min, Jesse Pound, Pia Singh

Citi says AppLovin’s shares could more than double

AppLovin‘s recent slump has provided investors with a buying opportunity, according to Citi.

The mobile technology company’s stock has been hit by bearish reports from short sellers, as well as the broader market rout. The company was also excluded in the latest additions to the S&P 500.

Analyst Jason Bazinet said peer multiples suggest the market is attributing a 50% chance that AppLovin’s stock is worth $0 and called the sell-off “extreme.” He reiterated his buy rating and $600 price target, which implies 122% upside from Friday’s close.

Bazinet pointed to the “solid start” of the company’s eCommerce pilot, which generated $100 billion of revenue in the fourth quarter, according to recent disclosures. In addition, the company may have bought back $500 million of its stock in the first two months of the first quarter, and could buy back as much as $1.2 billion in the quarter, Bazinet said in a note Sunday.

“We suspect AppLovin will use the recent dislocation in the share price to retire more shares, paving the way for additional value creation for long-term investors,” he wrote.

Shares were down 10% on Monday.

— Michelle Fox

Index of ‘fear and greed’ hits lowest point in more than a year

One measure of fear and greed in the market is flashing warning signs.

CNN’s Fear and Greed Index hit 16 on Monday, placing it in the “extreme fear” zone. That marks the closely watched sentiment gauge’s lowest reading in more than a year.

The latest index data also underscores the rapid decline in investor confidence. The index sat in “neutral” territory just one month ago and was in the “greed” zone a year ago.

— Alex Harring

BCA Research downgrades stocks, cites tariffs and DOGE

Aggressive tariffs and federal spending cuts spearheaded by the so-called Department of Government Efficiency could tip the U.S. economy into a recession, according to BCA Research, which downgraded equities due to this negative backdrop.

“We think that the uncertainty engendered by DOGE and tariffs will provide the nudge to tip it into a recession and are tactically downgrading equities to underweight and upgrading fixed income and cash to overweight,” BCA strategists led by chief U.S. investment strategist Doug Peta wrote in a note to clients.

— Yun Li

Robinhood, Strategy among the names making midday moves

Here are some stocks making big moves in midday trading:

• Bank stocks — Major banks came under pressure during Monday’s session amid rising concerns about a potential slowdown in the U.S. economy. JPMorgan Chase and Goldman Sachs fell roughly 4%. Citigroup slid more than 4%, and Wells Fargo dropped 5%. Bank of America shed more than 2%, and Morgan Stanley declined more than 5%.
• Robinhood — Shares of the financial services platform plunged more than 14% on the heels of Finra saying on Friday that it has ordered Robinhood to pay almost $30 million in restitution to customers. The self-regulatory organization also fined Robinhood Financial and Robinhood Securities $26 million, alleging a failure to “establish and implement reasonable anti-money laundering programs,” among other issues.
• Crypto-related names — Bitcoin slid 3% in midday trading as investors fled speculative corners of the market. Stocks tied to cryptocurrencies also fell, with crypto exchange Coinbase losing 10% and bitcoin proxy Strategy shedding 13%.

Read here for the full list.

— Sean Conlon

Nasdaq Composite tumbles 12.8% since February high less than three weeks ago

The Nasdaq Composite at Monday’s lows was down 13.3% from the all-time closing high back on Dec. 16, 2024, but perhaps more worryingly, was 12.8% below the February closing high reached less than three weeks ago on Feb. 19.

The S&P 500 at Monday’s low of 5,638.84 was down 8.22% from its Feb. 19 all-time closing high of 6144.15, while the Dow Jones Industrial Average at Monday’s low of 42,275.56 was off 6.1% from its all-time high in early December and lower by 5.8% from its closing high in early February of 44,873.28.

— Scott Schnipper

Volatility hits highest level since December

Volatility on Wall Street rose to its highest level since December on Monday, as investors continue to assess the effects of tariffs on the U.S. economy.

The CBOE Volatility Index, or VIX, was last more than 10% higher at 25.93. That is the highest level since Wall Street’s fear gauge hit 27.62 at the end of 2024.

— Brian Evans

Crypto ETFs register fourth consecutive week of outflows

Crypto investment products have registered their fourth week in a row of outflows. According to CoinShares data, crypto funds saw $867 million in outflows last week, bringing its total outflows during the four-week period to $4.75 billion.

Most of the bearishness came from the U.S., where investors pulled out $922 million last week. Other regions, particularly Switzerland, Canada and Germany, saw a buying opportunity.

In the U.S., Fidelity’s FBTC led the outflows, followed by BlackRock’s IBIT, Ark 21 Shares’ ARKB and Grayscale’s GBTC.

Blockchain-focused equity funds also suffered from the negative sentiment. Overall, they saw $48 million in outflows last week. Most of that came from the SPDR Galaxy Hedged Digital Asset Ecosystem ETF with outflows last week of $32.3 million.

— Tanaya Macheel

Household financial outlook hits multiyear lows, New York Fed survey shows

Consumers’ outlook for inflation changed surprisingly little in February despite widespread tariff worries, though they grew more worried about being able to pay their bills, according to a New York Federal Reserve survey released Monday.

Median inflation expectations rose just 0.1% for the year ahead to 3.1%, while there was no change at the three- and five-year horizons. The results counter other surveys that show inflation angst on the rise.

At the same time, the perceived likelihood of missing a minimum debt payment over the next three months rose to 14.6%, a 1.3 percentage-point increase and the highest level since April 2020, during the early days of the Covid-19 pandemic. Similarly, the share of households expecting a worse financial situation in a year increased to 27.4%, the highest since November 2023.

— Jeff Cox

S&P 500 falls back below 200-day moving average

The S&P 500 has once again fallen under its 200-day moving average and is also trading below its worst level on Friday.

The index did manage to rally on Friday to close above its the 200-day moving average, which sits at about 5,733, but market technicians would consider it a warning if the S&P 500 cannot make the same rally today.

“The risk-off rotation last week dragged the S&P 500 below support off the January lows (5,773) and into the 200-day moving average (dma) at 5,733. A break below this closely watched support level would raise concerns over a potential top being made and leave 5,703 (October low) and the 5,665-5,667 range (key Fibonacci retracement level/July highs) as the next areas of downside support,” Adam Turnquist, chief technical strategist for LPL Financial, said in a note.

— Jesse Pound

Tech-software ETF hits lowest level since October

During Monday’s trading session, the iShares Expanded Tech-Software Sector ETF (IGV) fell 3.5%, hitting its lowest level since October.

The exchange-traded fund was led to the downside by crypto-related names such as Cipher Mining, down 17%, alongside Strategy and TeraWulf, both down 14%.

— Gina Francolla, Lisa Kailai Han

Consumer staples stocks outperform in potential risk-off move

Consumer staples stocks pushed higher in morning trading, a sign of a potential shift toward defensive plays after last week’s market sell-off.

Shares of Procter & Gamble rose 1%, and Unilever jumped 2.4%. The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.6% even though retailers such as Costco and Walmart were under pressure.

Another defensive stock outperforming on Monday was Johnson and Johnson, climbing 1.2%.

— Jesse Pound

Stocks open lower to start new trading week

Stocks opened lower to kick off the new trading week.

The Dow Jones Industrial Average dropped 400 points, or 1%. The S&P 500 slipped 1.4% and the Nasdaq Composite shed 2%.

— Lisa Kailai Han

Natural gas futures surge to highest since December 2022

April natural gas futures climbed to $4.901 per million BTUs Monday, the highest since late December 2022. In early trading, Expand Energy added 2%, Antero Resources, Conoco Phillips and California Resources rose about 1% and Coterra Energy advanced 0.5%, outperforming in a down market.

Nat gas prices posted their best week in two months last week, boosted by colder-than-usual weather patterns and concerns about refilling storage tanks ahead of the usual summer pickup in demand, Reuters said late last week.

— Scott Schnipper, Gina Francolla

Stocks making the biggest moves premarket

Check out some of the companies making headlines in premarket trading:

• Tesla — The electric vehicle company slipped nearly 3%, continuing its recent slide. Tesla is now on the cusp of erasing its postelection gains.
• Bank stocks — Shares of major banks were under pressure Monday as worries over a possible U.S. economic slowdown weighed on them. JPMorgan Chase dropped more than 1% along with Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs.
• DoorDash, Coinbase — The stock added nearly 3% on news that the food delivery company will join the S&P 500 effective March 24. Coinbase, meanwhile, shed 5% after being snubbed for inclusion in the index.

Read the full list here.

— Brian Evans

Tesla shares fall

Tesla shares are down again in the premarket, close to giving up its postelection gain as it extends its losing streak.

The electric vehicle maker has slid for seven straight weeks, after CEO Elon Musk joined the Trump administration, closing Friday at $270.48. It is the longest such losing streak for Tesla in its 15 years as a public company.

Tesla shares finished the week down more than 10%, at their lowest level going back to Nov. 5, Election Day, when they closed at $251.44. Since the stock peaked at almost $480 on Dec. 17, Tesla has lost well over $800 billion in market cap.

— Lora Kolodny, Sarah Min

Trump’s tariffs could constrain U.S. economic growth but spur fiscal expansion overseas, Alpine Macro says

President Donald Trump’s new tariffs have the capacity to completely change modern global relations as we know them, research firm Alpine Macro wrote in a Monday note.

“The bull market in stocks is entering a volatile, risky, and potentially dangerous phase. The initial euphoria over Trump’s pro-growth policies is being overshadowed by rising concerns over his tariff threats,” said Chen Zhao, the firm’s chief global strategist. “America’s trade policy and geopolitics are undergoing paradigm shifts that will not only reshape the global economic order but also impact income growth, corporate profits, and the financial market outlook.”

Zhao elaborated that current paradigm shifts include a new fiscal expansion proposal in Germany and an increase in fiscal stimulus from the Chinese government to boost domestic demand.

“The bottom line is that it is reasonable to assume that Trump’s tariff war and policy uncertainty will weaken sales, trim corporate profits, hurt risk assets, and weaken GDP growth,” he wrote. “The impact of Trumpism is still unfolding, but his trade policies are inadvertently spurring fiscal expansion in the rest of the world. Ironically, the tariff war could provide a positive impetus for economic growth in the rest of the world, although it will constrain U.S. economic expansion for a while.”

The strategist added that in terms of portfolio allocation, investors should reduce their exposure to U.S. equities in favor of European and emerging market stocks.

— Lisa Kailai Han

Big bank stocks fall on worries around economy

Shares of major banks were under pressure Monday as worries over a possible U.S. economic slowdown weighed on them. JPMorgan Chase dropped more than 1% along with Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs.

— Fred Imbert

Nvidia slides in premarket trading

Nvidia slid about 2% before the bell on Monday, putting downward pressure on the broader market.

Monday’s move comes amid a pullback for the megacap tech stock, which has become a favorite of retail investors due to its status as an artificial intelligence leader.

After two years of monster gains, the stock has tumbled about 16% in 2025. A sizable chunk of those losses came last week, when shares slid more than 9%.

— Alex Harring

Asia-Pacific markets mixed after volatile trading week; Japan’s 10-year bond yield hits fresh high

Asia-Pacific markets were mixed on Monday after a volatile trading week around the world.

Investors were particularly keeping a watch on the shares of steel manufacturers ahead of the U.S.’ 25% tariffs on steel and aluminum imports, which will kick off Wednesday.

Japan’s benchmark Nikkei 225 led gains in Asia, rising 0.38% in choppy trade, to end the day at 37,028. The broader Topix index, meanwhile, fell 0.29% to close at 2,700, paring earlier gains.

South Korea’s Kospi added 0.27% to end the day at 2,570, while the small-cap Kosdaq fell 0.26% to 725.

Australia’s S&P/ASX 200 rose 0.18% to end the day at 7,962, after closing at a six-month high in its previous session.

Mainland China’s CSI 300 dropped 0.39% to end the day at 3,928.80, while Hong Kong’s Hang Seng Index slipped 1.83% in its last hour.

Over in India, the benchmark Nifty 50 was trading 0.27% higher, while the BSE Sensex climbed 0.24% as of 1:10 p.m. local time.

— Amala Balakrishner

Futures extend losses

The initial losses for equity futures have widened in the opening hour of trading. Nasdaq 100 futures are leading the downward move, now off by about 1%.

— Jesse Pound

Stocks suffered losses last week

Wall Street is coming off a negative week for stocks.

• The S&P 500 fell 3.10% for its worst weekly performance since September.
• The Nasdaq Composite fell -3.45% for the week.
• The Dow fell -2.37% for the week, its second negative week in three.
• The small cap Russell 2000 fell -4.05%, its worst weekly performance since December.

— Jesse Pound, Christopher Hayes

DoorDash and Williams-Sonoma are set to join S&P 500

Four new stocks are joining the S&P 500 in the index’s quarterly shake-up.

S&P Dow Jones Indices announced Friday evening that DoorDash, Williams-Sonoma, TKO Group Holdings and Expand Energy are joining the index.

In an offsetting move, Borgwarner, Teleflex, Celanese Corporation and FMC Corporation are getting demoted from the index.

Since the S&P 500 is tracked closely by massive index funds, change can trigger large amounts of trading and move stock prices.

The changes will become effective prior to the open of trading on March 24.

— Jesse Pound

Futures open lower

U.S. stock futures fell when trading resumed Sunday evening, with Dow futures sliding more than 100 points.

— Jesse Pound