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March 10 (UPI) -- Major stock indexes plummeted Monday as the sell-off continued from last week amid fears of a recession because of a U.S. trade war with other countries and other worrying economic news with Donald Trump as U.S. president. Stocks opened with steep losses Monday morning and it worsened as the day continued, one day after Trump said in an interview that the country could face a recession. The indexes slightly rebounded from lows before trading ended at 4 p.m.
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The prices are the worst since he became president the second time on Jan. 20, with all-time highs erased since Trump was elected.
The S&P 500 was down 2.6% from Friday, and was at 5,614.56, its lowest level since September, a drop of 155.63 points. That is a 8.7% plunge from a record high on Feb. 19.
The Nasdaq Composite was off 4%, the worst slide since 2022, at 17,468.33. The tech-heavy index is 14% from a record high of 20,173.89 on Dec. 16. A drop of 10% is considered a "correction."
The Dow Jones Industrial Average dropped 890.01 points, or 2.08%, to 41,911.71, the lowest since Nov. 4, the day before the election. The market hit a record of 45,014.04 on Dec. 4.
The markets declined 2% last week.
Stocks in Asia and Europe dropped earlier in the day but not as severely.
Investors were concerned about a significant falloff in U.S. growth amid inflation and an uncertain job market with federal government workers losing their jobs or taking buyouts.
And those fears intensified over the weekend when Trump said the country could face a recession.
"I hate to predict things like that," Trump told Fox News' Maria Bartiromo in a Sunday Morning Futures interview. "There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing ... it takes a little time, but I think it should be great for us."
The White House is hoping planned tax cuts and tariff revenue will boost the economy.
"Since President Trump was elected, industry leaders have responded to President Trump's America First economic agenda of tariffs, deregulation, and the unleashing of American energy with trillions in investment commitments that will create thousands of new jobs," White House spokesperson Kush Desai said in a statement to CNN. "President Trump delivered historic job, wage, and investment growth in his first term, and is set to do so again in his second term."
Analysts disagree.
"Many investors support the president's pro-growth business agenda, but the administration's frenetic approach to policymaking is unsettling," Michael Arone, chief investment strategist at State Street Global Advisors, told CBS News.
"We are in the throes of a manufactured correction," Sam Stovall, chief investment strategist at CFRA Research, told CNBC. "I say manufactured because it's really based in response to the new administration's tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy."
Goldman Sachs on Monday downgraded its economic growth forecast for 2025 from 2.4% to 1.7%, citing the Trump administration's trade policies.
Also Monday, China began implementing retaliatory tariffs on a range of American farm products. That includes a 15% levy on U.S. chicken, wheat and corn, and a 10% tax on soybeans, pork, beef and fruit.
Last week, the Trump administration imposed 25% tariffs on imports from Canada and Mexico but paused them days later for goods covered under the U.S.-Mexico-Canada agreement, including automobiles.
Mexico and Canada have vowed to hit the U.S. with reciprocal tariffs.
Ontario, Canada's most populous province, on Monday said it is adding a 25% surcharge to all electricity exports sent to the U.S.
Nvidia, a tech company on Nasdaq, was down more than 5.07%, and is off 22.65% year.
Tesla, run by billionaire Elon Musk, was down 15.43% and is off 41.43% for the year.
Also slumping were Apple at 4.85%, Microsoft at 3.34% and Alphabet Meta at 4.41%.
The DJIA Transportation Index declined 2.28% but DJIA utilities were up 1.24%. The energy sector rose 0.95%. Technology slumped 4.34%.
The price of gold was down $21.1, a 0.97% drop to $2,892.90. Gold hit an all-time high of 2,953.20 on Feb. 20.
West Texas Intermediate oil for April futures was down 1.09% to $65.95 a barrel.
Bitcoin prices fell below $80,000 for the first time since Trump's election in November, and three days after the White House convened the first crypto summit Friday. Earlier last week he announced the creation of "strategic bitcoin reserve."
