U.S. stock sold off sharply on Monday, with major indexes posting their steepest declines of the year amid growing signs that the economy may be on weaker footing than previously believed.
The S&P 500 dropped 2.69 percent, its worst day in months, while the Nasdaq Composite plunged 4.00 percent, driven by sharp losses in technology stocks. The Dow Jones Industrial Average fell 890 points, or 2.08 percent, and the Russell 2000, which tracks small-cap stocks, declined 2.38 percent, signaling weakness across the market.
The bond market reflected growing investor caution, with yields on U.S. Treasuries falling as traders moved into safer assets.
The 10-year Treasury yield slid 9.19 basis points to 4.226 percent, while the 2-year yield fell 9.8 basis points to 3.904 percent, indicating expectations for slower economic growth.
A basis point is a one-hundredth of a percentage point. Bond yields fall when bond prices rise.
Over the weekend, President Donald Trump appeared to acknowledge the possibility of an economic slowdown, telling Fox News that there would be a “period of transition” as his administration implements major policy changes.
Meanwhile, Commerce Secretary Howard Lutnick pushed back on recession concerns, stating on NBC News, “There’s going to be no recession in America.”
