Wall Street suffers ‘ugly’ sell-off amid US recession fears, as Musk’s Tesla falls 50% from all–time high – as it happened

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A late update, just to catch the close of the New York stock market,And there’s oceans of red across Wall Street tonight, where the Dow Jones industrial average has shed 890 points, or just over 2%, to close at 41,911 points tonight,The S&P 500 index had a grim day too, ending 2,7% lower, or -155 points, at 5,614 points, as growth fears hammered US stocks,The tech-focused Nasdaq slumped by 4%, its biggest daily drop since September 2022.

Donald Trump’s seemingly blasé attitude to the risks that his policies might push the US into recession are being blamed for today’s selloff, which also hit European stocks today.Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, says:“The Trump administration seems a little more accepting of the idea that they’re OK with the market falling, and they’re potentially even OK with a recession in order to exact their broader goals.“I think that’s a big wake-up call for Wall Street.There had been a sense that President Trump kind of measured his success on stock market performance.There was even somewhat of a “Trump put” so to speak.

And I think we’re seeing that’s not the case, so the market is starting to reflect that reality.”Tesla has ended the day down 15% at $222.15, its lowest point since October.That confirm the company has halved in value since its all-time high in December.A late update, just to catch the close of the New York stock market.

And there’s oceans of red across Wall Street tonight, where the Dow Jones industrial average has shed 890 points, or just over 2%, to close at 41,911 points tonight.The S&P 500 index had a grim day too, ending 2.7% lower, or -155 points, at 5,614 points, as growth fears hammered US stocks.The tech-focused Nasdaq slumped by 4%, its biggest daily drop since September 2022.Donald Trump’s seemingly blasé attitude to the risks that his policies might push the US into recession are being blamed for today’s selloff, which also hit European stocks today.

Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, says:“The Trump administration seems a little more accepting of the idea that they’re OK with the market falling, and they’re potentially even OK with a recession in order to exact their broader goals,“I think that’s a big wake-up call for Wall Street,There had been a sense that President Trump kind of measured his success on stock market performance,There was even somewhat of a “Trump put” so to speak,And I think we’re seeing that’s not the case, so the market is starting to reflect that reality.

”Historian (and ace TV presenter) Simon Schama draws a parallel between events today, and after the UK’s mini-budget of 2022:Trump doing a Liztruss - the most colossal own goal - but unlike her cant be got out of officeWith the London stock market closed, it’s time for a recap…..Wall Street is still in the red, with investors concerned that Donald Trump doesn’t seem concerned about the economic damage – or market turmoil – his policies may cause.Here’s the damage:Dow Jones industrial average: down 516 points or -1.2% at 42,285 pointsS&P 500: down 130 points or -2.

2% at 5,639 pointsNasdaq composite: down 648 points or 3.5% at 17,547 pointsTesla’s shares continue to be hammered – they’re now down 11.8% at $231.65, more than 50% below the all-time peak scaled last December.The Wall Street sell-off has pushed up stock market volatility, amid rising concerns that tariffs and trade wars may hurt the US economy.

Economists fear that the risks of a “Trumpcession” had increased as the president’s brinkmanship and stop-start approach to tariffs rattled global investors, exemplified by last week’s decision to pause US tariffs on goods from Canada and Mexico for the second time in as many months,Kathleen Brooks of the trading platform XTB said Trump was putting his political goals ahead of the strength of the economy and the stock market,“[His] flip-flopping on tariffs, and his old-fashioned views of America first, is weighing on consumption and knocking confidence,”It comes as Wall Street economists downgrade their growth forecasts for the US, warning that Trump’s trade wars are proving more damaging for the US economy than first anticipated,Analysts at Goldman Sachs said on Friday that the chances of a US recession had increased from 15% to 20%, as it revised its forecasts to incorporate higher tariffs and inflation, alongside a hit to gross domestic product and employment.

Here’s the full story:European markets have also closed in the red.Germany’s DAX has fallen by 1.75%, France’s CAC lost 0.9% and Italy’s FTSE MIB is down 0.95%.

Here are some photos from the trading floor of the New York stock exchange today:Tomasz Wieladek, an economist at US asset manager T Rowe Price, has also warned that the sell-off is getting “ugly”,Wieladek says (via the FT):“There is the realisation that Trump doesn’t care about the real economy in the short term,Markets are now beginning to take a trade war future seriously,,.

and beginning to realise how painful this will be,”Last week was the worse for the London stock market this year, with the FTSE 100 falling by 1,4%,This week has got off to a bad start too – the ‘Footsie’ has just closed at its lowest level in over a month,The blue-chip share index has ended the day down 0.

9%, or 79,6 points lower, at 8,600 points, the lowest close since early February,Gambliing firm Entain (-8,6%) was the top faller, followed by jet engine maker and servicer Rolls-Royce, with mining companies and banks also lower amid economic slowdown fears,“The US market sell-off is starting to look ugly,” says Dan Coatsworth, investment analyst at AJ Bell.

He writes:“Many people have been worried about elevated valuations among US equities for some time and looking for the catalyst for a market correction.A combination of concerns about a trade war, geopolitical tensions and an uncertain economic outlook could be that catalyst.“Four months ago, Donald Trump was seen as the market’s saviour, promising lower taxes and less stringent regulation.Now his actions represent the harbinger of doom.The R word is back on everyone’s lips as people ponder if trade tariffs will backfire and lead to recession rather than US economic prosperity.

“The Nasdaq peaked at 20,204.58 on 16 December 2024 and dropped to 17,502.51 in early trading on Monday.“Leading the market lower were many of the stocks that produced stellar gains during the past few years including MicroStrategy, Tesla, Palantir and ASML.“It was telling that the top risers on the Nasdaq were healthcare, utility and drink/snack companies.

Investors were spooked by talk of recession so they hid in industries that should tick over regardless of the state of the economy.“Tins of baked beans from Kraft Heinz, packs of crisps from Walkers’ owner PepsiCo, and energy drinks from Monster Beverage are everyday essentials for many, helping them get through the day without breaking the bank.It’s no wonder shares in all three companies were in demand during a chaotic day for the markets.“During his first term as US president, Donald Trump often cited a rising stock market as being representative of his success.As such, he will not want to see a full-blown market crash months into his second term.

Quite what rabbit he could pull out of the hat to put markets back on an upwards path is unknown, but Trump might feel compelled to come up with something,”Oil also appears to be suffering from growth fears,Brent crude, the international benchmark, is down 0,75% at $69,82 per barrel.

While US stocks are falling, government bond prices are rising.That’s pushing down the yield, or interest rate, on Treasury bills.10-year Treasury yields are down 10 basis points (0.1 percentage points) at 4.21% today.

Falling yields can be a sign that investors are gloomier about economic prospects, and prepared to pay a higher price for safe-haven assets, accepting a lower rate of return.Holger Schmieding, chief economist at Berenberg Bank, is confident that president Trump won’t push the US into recession with policies such as tariffs on major trading partners.Schmieding told CNBC’s “Squawk Box Europe” today:“I don’t think we will talk about a U.S.recession.

The U,S economy is resilient, I would say, largely despite Donald Trump,”Wall Street’s ‘fear gauge’, the VIX index, has risen to its highest level since mid-December, up around 12% today,$VIX The Cboe Volatility Index, an options-based gauge of expected volatility in the S&P 500 widely known by its trading symbol, VIX, jumped Monday morning to its highest level since December,In recent action, it was trading at 26.

70, after hitting its highest intraday level…
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