The US Nasdaq plummeted 4%, marking the largest decline since 2022

The US stock market fell sharply on Monday, led by technology stocks, and the Nasdaq fell 4%, marking the largest daily decline since September 2022. The uncertainty of Trump's tariff war has raised concerns among investors about an economic recession in the United States and increased bear market risks in the US stock market. This week, the market will receive important economic data such as CPI and PPI.

The Dow Jones Industrial Average fell 890.01 points, a decrease of 2.08%, to 41911.71 points; The Nasdaq fell 727.90 points, or 4.00%, to 17468.32 points; The S&P 500 index fell 155.62 points, or 2.70%, to 5614.58 points.

Tesla's stock price (222.15, -40.52, -15.43%) plummeted by 15.4%, and the company was bearish by multiple analysts. Nvidia fell 5.1% and its stock price hit a six-month low.

The US stock market continued last week's downward trend. Last week, the Dow Jones Industrial Average fell 2.37% and the Nasdaq fell 3.45%. The S&P 500 index fell 3.10%, recording its largest weekly decline since September 2024.

The market continues to be impacted by news from the US government. The tariff negotiations between the United States, Mexico, and Canada continue to put pressure on the US stock market.

A key driving factor is the trade war launched by Trump, and the market is concerned that it may bring another inflation shock and disrupt global supply chains. This triggered a sell-off in the US stock market.

Even after Trump postponed raising trade policies towards Mexico and Canada again, the sell-off in US stocks continued. The US federal government's withholding of federal funds and dismissal of tens of thousands of government workers have also deepened market concerns about an economic recession.

Investors are still concerned that the escalating global trade war will harm the US economy, and doubts about the US economy falling into recession are growing. The term 'recession' is rapidly spreading among traders and analysts worldwide. According to a survey, 91% of economists believe that Trump's rapidly changing trade policies have increased the likelihood of a downturn in the US economy.

In an interview program aired on Sunday, US President Trump did not directly answer questions about the possibility of an economic recession, only saying that "the US economy is going through a transition period".

Trump's attitude, which was interpreted by the market as' default ', was hesitant to speak. City Index analyst Matt Simpson said that Trump's response is "essentially equivalent to acknowledging the risk of a recession" for the market.

Sanford C. Bernstein strategist Rupal Agarwal said that Trump's trade policies have put "considerable pressure on the US stock market, and we are now beginning to see concerns about a recession in the US economy

Just a few weeks ago, we were asked if we believed the US economy was accelerating again, "said Gennadiy Goldberg, head of US interest rate strategy at TD Securities in Canada." And now suddenly, the word 'recession' is repeatedly mentioned. The market has gone from a frenzy for growth to absolute despair

Meanwhile, more analysts have warned that Trump's trade policies and cuts in fiscal spending may have an impact on corporate profits.

US Treasury Secretary Besson has previously warned that economic growth may be disrupted. Beisen also ruled out the possibility of policy changes to support the US stock market.

He admitted in an interview on Friday that the Trump administration had some ups and downs at the beginning of taking over the US economy, referring to a natural adjustment resulting from a gradual reduction in public spending.

Bessent stated that the economic expansion brought about by the Biden administration is artificially supported by government spending, and the financial market and the US economy have become addicted to government spending. There will be a "detoxification period" in the future.

The political turmoil surrounding Trump's tariffs and trade policies this week may continue, and a large amount of economic data may also affect the market.

In terms of inflation, the Consumer Price Index (CPI) for February is scheduled to be released on Wednesday, followed by the Producer Price Index (PPI) on Thursday.

Bill Adams, Chief Economist of Comerica Bank, stated that inflation data will dominate this week. After a significant increase in nominal and core consumer price indices (CPI) in January, the rate of increase in February may be more moderate, keeping its annual growth rate relatively stable. Under the push up of tariffs and tariff threats, the rate of increase in producer price index may exceed that of consumer price index for the second consecutive month, thereby maintaining a high annual increase in PPI

Focus stocks

Tesla's stock price has plummeted. Anti Musk protests have erupted in many parts of the United States.

UBS (31.88, -2.27, -6.65%) significantly reduced Tesla's delivery to 367000 vehicles in the first quarter of 2025, a year-on-year decrease of 5% and a month on month decrease of 26%. They also lowered Tesla's target stock price to $225, with nearly 30% downward potential compared to the current price. UBS pointed out that the European and Chinese markets have become the "hardest hit areas" for Tesla's declining delivery volume, and the overall weak trend of global demand is difficult to reverse.

Since Musk became a senior advisor to the Trump administration, Wall Street seems no longer optimistic about Tesla's prospects, with UBS, JPMorgan, Goldman Sachs (531.66, -28.01, -5.00%), and others lowering their target prices.

Wolfe Research predicts that Microsoft (380.16, -13.15, -3.34%) will continue to decline by 20%. The analyst of the institution pointed out that Microsoft's stock price is at a critical technological level, and if it fails to maintain the current support level, it may lead to further decline.

Apple (227.48, -11.59, -4.85%) has indefinitely postponed the previously promised update time for the Siri digital assistant feature. The company stated that the features released in June last year, including Siri's ability to use users' personal information to answer questions and more precise control of applications, will now be released at some point in the 'next year'. Although the iPhone manufacturer had not previously set a release deadline for these features, the original plan was to release them in the iOS 18.4 software update in April this year.

The product safety regulatory agency of the Australian Competition and Consumer Commission (ACCC) issued a "Project Safety Recall" notice last Friday (March 7) regarding Google's (167.81, -7.74, -4.41%) Pixel 4a phones. The notice confirms that Google's previously released battery performance update was aimed at "reducing the risk of battery overheating". This update was initially announced in January without specifying the specific reason, and this recall notice reveals the purpose behind it.

Lucas Montarce, chief financial officer of Lilly (829.76, -39.82, -4.58%), said on Monday that Lilly planned to launch its blockbuster diabetes drug Mounjaro in China, India, Brazil, Mexico and other countries by 2026. The drug can help patients with type 2 diabetes achieve effective blood sugar control and significantly reduce weight by simulating the natural action of human incretin.

TSMC's (170.65, -6.45, -3.64%) consolidated revenue in February decreased by 11.3% month on month.

DoorDash (177.86, -0.22, -0.12%) is included in the S&P 500 index.

Novo Nordisk (78.95, -8.22, -9.43%) released data on the weight loss drug Cagrisema.

Redfin, a real estate brokerage company, saw its stock price soar as it was rumored that Rocket had agreed to acquire the company for $1.75 billion.

Cryptocurrency concept stocks such as Strategy and Coinbase have generally declined.