WASHINGTON: Wall Street’s major indexes started the day in the red Monday after US President Donald Trump declined to rule out the chance of a recession in the world’s biggest economy.
Minutes into trading, the Dow Jones Industrial Average slid 1.1 percent to 42,320.56, while the broad-based S&P 500 Index fell 1.6 percent to 5,677.76.
The tech-focused Nasdaq Composite Index plunged 2.3 percent to 17,782.54.
The fluctuations came after stock markets appeared somewhat assuaged at the end of last week on Federal Reserve Chair Jerome Powell’s comments that the US economy was in a good place.
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On Sunday, Trump told a Fox News interviewer that he disliked predicting things like a recession, when asked directly about the possibility of such a downturn in 2025.
“There is a period of transition, because what we’re doing is very big – we’re bringing wealth back to America,” Trump said.
But he added that this takes some time.
“Market participants are losing faith in the notion that President Trump will forestall a market decline with a reversal in his policies if those policies are the basis for a material decline in stock prices,” said Patrick O’Hare of Briefing.com in a note.
Looking ahead, investors are eyeing a consumer inflation report due midweek for further signals on how the economy is faring.
They will also be weighing the possibility of a government shutdown as lawmakers seek to avert a closure by Friday.
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