Wall Street Slumps: S&P 500, Nasdaq Tumble to Six-Month Lows Amid Tariff Worries

U.S. stocks nosedived on Monday, with the S&P 500 and Nasdaq plunging to over six-month lows as investors braced for President Donald Trump ’s impending announcement of sweeping tariffs set for Wednesday. The blue-chip Dow Jones Industrial Average fell closer to correction territory, shedding 393.09 points, or 0.94%, to close at 41,190.81.

By 09:44 a.m., the S&P 500 had dropped 81.90 points, or 1.47%, to 5,499.04, while the tech-heavy Nasdaq sank 409.48 points, or 2.36%, to 16,913.52. The domestically focused Russell 2000 index slumped 2.4%, reflecting broad-based weakness.

Tech Stocks Bear the Brunt of Selloff

Technology stocks were hit hardest, with Nvidia tumbling 5.3%, Microsoft plummeting 12.6%, and Tesla sliding 7% after Stifel slashed its delivery forecast. The CBOE Volatility Index (VIX), often called Wall Street’s “fear gauge,” surged to a near three-week high of 24.79, indicating heightened investor anxiety.

Recession Fears Intensify

Recession fears deepened as Goldman Sachs raised the probability of a U.S. downturn from 20% to 35%, slashing its year-end target for the S&P 500. Investors flocked to safe-haven assets, driving up U.S. Treasury bonds while gold prices surged to new highs.

Healthcare Stocks Suffer Amid FDA Shakeup

Healthcare stocks suffer sharp losses following reports of the FDA’s top vaccine official being forced to resign. Moderna plummeted 13%, Pfizer fell 2.2%, and gene therapy firms Taysha Gene Therapies and Solid Biosciences declined 18.6% and 15.2%, respectively. CRISPR Therapeutics also dropped 9.7%.

The selloff comes amid concerns that the tariffs could spark a global economic slowdown, stoking inflation and disrupting supply chains. The market’s focus this week remains on key economic indicators, including ISM business activity surveys, non-farm payrolls, and speeches from several Federal Reserve officials, including Chair Jerome Powell.