The U.S. stock market experienced a sharp downturn on Monday amid increasing concerns over economic growth and a potential recession. President Donald Trump, in an interview with Fox News, declined to rule out a recession this year, stating that he expects a “period” of transition due to policy changes.
Market Overview
The Dow Jones Industrial Average plummeted by 370 points (-0.9%), while the S&P 500 dropped 1.4%, and the Nasdaq Composite slid 2.1%. This follows last week’s performance, which marked the stock market’s worst two-year stretch.
The market rout was led by the Magnificent 7 stocks, with Nvidia (NVDA) falling 2.6% and Tesla (TSLA) plunging 5.6%, erasing pre-market gains. Palantir (PLTR) also took a significant hit, declining by 6.7%.
Key Stocks to Watch
Airbnb (ABNB)
Airbnb’s stock saw a slight increase after Jefferies upgraded the shares to a “buy.” The investment firm cited durable growth and the addition of an “experiences” product category as key reasons for optimism.
Bally’s (BALY)
Bally’s shares climbed 4.17% following its $150 million recapitalization proposal for Star Entertainment. The deal would give Bally’s a controlling 50.1% stake in the Australian casino company.
Cognizant (CTSH)
Cognizant’s stock rose 2.04% after reports surfaced that activist investor Mantle Ridge had built a $1 billion stake in the technology services giant.
Coinbase (COIN)
Coinbase stock plummeted 7.7% after S&P Dow Jones Indices excluded the crypto exchange from its S&P 500 index, a major setback for the company.
Doordash (DASH)
Doordash initially surged 2.8% pre-market after being included in the S&P 500, but later gave up gains as broader market sentiment turned bearish.
Oracle (ORCL)
Oracle’s stock declined 3.66% ahead of its earnings report scheduled for release after market close. Analysts expect earnings of $1.49 per share on $14.38 billion in revenue. The report will be closely monitored for insights into enterprise technology spending and cloud growth.
Global Market Impact
Stocks in Hong Kong also faced pressure on Monday following news that China’s consumer prices declined in January and February, signaling ongoing deflationary concerns in the world’s second-largest economy.
With growing economic uncertainty and investor sentiment turning cautious, all eyes will be on upcoming data releases and earnings reports to gauge the market’s trajectory in the coming weeks.
