The U.S. stock market opened the week on a rocky note as investors grappled with growing concerns over economic growth and policy shifts. On Monday morning, stocks tumbled following comments from former President Donald Trump, who did not rule out the possibility of a recession in 2025. While Trump emphasized that the economy is in a “period of transition” due to ongoing policy changes, investor sentiment remained cautious.
Major Indexes in the Red
By mid-morning trading in New York, the Dow Jones Industrial Average had dropped 423 points, or 0.9%, while the S&P 500 shed 2%. The Nasdaq Composite faced the steepest decline, plunging 3.2%, as tech-heavy stocks faced heightened volatility. The downturn comes on the heels of last week’s brutal selloff, which marked the worst performance for the stock market in two years.
Magnificent 7 Stocks Under Pressure
The widely followed “Magnificent 7” tech stocks all experienced losses on Monday. Leading the declines was Nvidia (NVDA), which fell 5%, while Tesla (TSLA) slumped 8.8%, wiping out its post-election rally. The downturn comes as Anthony Scaramucci predicted that Elon Musk would be “burned” by Trump within six to eight months. Palantir (PLTR) shares also traded lower amid the broader market downturn.
Global Market Pressures
Outside the U.S., stocks in Hong Kong took a hit after China reported that consumer prices fell during the January-February period, fueling concerns of persistent deflationary pressures in the world’s second-largest economy.
Key Stocks to Watch Today
Airbnb (ABNB)
Shares of Airbnb received a boost after Jefferies upgraded the stock to a “buy,” citing the company’s strong long-term growth potential and the expansion of its “experiences” segment.
Bally’s (BALY)
Bally’s stock jumped over 4% after the casino operator proposed a $150 million recapitalization plan for Australia’s Star Entertainment, giving it a potential majority stake in the company.
Cognizant (CTSH)
Cognizant shares climbed 2.5% following reports that activist investor Mantle Ridge has built a $1 billion stake in the technology services giant, fueling speculation about strategic shifts.
Coinbase (COIN)
Coinbase shares took a sharp 10% dive after S&P Dow Jones Indices chose to leave the crypto exchange operator out of the S&P 500, dampening investor confidence.
DoorDash (DASH)
Despite initially rising in premarket trading, DoorDash shares dropped 3.8% after being added to the S&P 500. The stock’s inclusion failed to generate lasting momentum amid broader market weakness.
IBM (IBM)
IBM shares rose about 1% after the U.S. Supreme Court refused to reinstate a $1.6 billion award against the company in a legal battle with KKR-owned BMC Software.
Oracle (ORCL)
Oracle will be closely watched as it prepares to release its quarterly earnings report after the market closes. Analysts expect earnings per share of $1.49 and revenue of $14.38 billion. Ahead of the earnings announcement, Oracle shares declined 4.6% in morning trading, as investors await insights into the company’s cloud computing growth and enterprise spending trends.
Market Outlook
As Wall Street navigates ongoing uncertainty, traders and investors will be watching for key economic data releases, corporate earnings reports, and potential policy shifts that could influence market sentiment in the coming weeks. With recession concerns looming and global headwinds in play, volatility is expected to remain high.
