Stock markets fell Monday after US President Donald Trump declined to rule out the potential for a recession this year and China’s retaliatory tariffs on US imports took effect. As of midday, the S&P 500 was down more than 2%, while the Nasdaq 100 was down more than 3%.
The market downturn comes after Trump on Sunday said the US was in a “period of transition,” underscoring investors’ growing concern that the US is heading into a recession. Speaking to NBC News on Monday, Trump’s Commerce Secretary Howard Lutnick sought to downplay the president’s comments, saying that “there’s going to be no recession in America.”
Investors and businesses are grappling with increased uncertainty amid Trump’s mercurial trade policy moves and signs of rising inflation. US Treasury yields have fallen as more analysts come to expect that the country’s central bank will cut interest rates sooner than it had previously indicated.
Read More: US stock market tumbles after Trump stokes recession fears
