Wall Street’s main indexes opened sharply lower Monday, with the S&P 500 on track to confirm bear market territory, as investors sought refuge in government bonds on economic worries over the fallout of U.S. President Donald Trump’s sweeping tariff plans.
At 09:42 a.m. EST the Dow Jones Industrial Average fell 1,443 points, or 3.77%, the S&P 500 lost 180 points, or 3.55%, and the Nasdaq Composite lost 770 points, or 5.01%.
The 10-year U.S. Treasury yields fell to 3.953%, with investors pricing in a chance of a fifth interest-rate cut from the Federal Reserve this year.
S&P 500 futures plunged more than 20% from their peak, suggesting the benchmark index has been in a bear market since February if it closes down 20% from its all-time highs.
Trump told reporters late on Sunday that investors must endure the consequences and that he would refrain from negotiating with China until the U.S. trade deficit is addressed.
In the two sessions after Trump’s tariff decision, the index has tumbled 10.5%, erasing nearly $5 trillion in market value, marking its most significant two-day loss since March 2020.