Wall Street is tumbling again Monday morning in the daylong stock market crash The latest plunge follows steep losses overseas, as President Donald Trump’s new tariffs spark global panic.
The S&P 500 dropped 3.8% early Monday. It’s now nearing bear market territory.
The Dow Jones crashed 1,200 points. The tech-heavy Nasdaq fell over 4%.
But the indexes turned around and even positive as Treasury Scott Bessent announced, that Trump is considering a 90-day pause for all tariffs except the ones against China. It remained unconfirmed for now but seems to be a sign that Trump blinks.
Investors are reacting to Trump’s sweeping trade policies. The president pushed ahead without Congress. His new rules hit nearly all U.S. trading partners.
And markets are reacting fast — and furious.
Europe And Asia Hit Just As Hard
Markets overseas didn’t fare any better. Hong Kong stocks nosedived 13.2%, marking their worst day since 1997.
Japan’s Nikkei index plummeted 8%. Europe wasn’t spared either, with indexes across the continent shedding 4% or more.
Oil prices also dropped, adding pressure on global energy stocks.
The timing couldn’t be worse. Economies are already battling inflation, war shocks, and rising interest rates.
JPMorgan CEO Sounds The Alarm
JPMorgan Chase boss Jamie Dimon issued a stark warning.
In his annual letter to shareholders, Dimon said the tariffs will likely raise prices across the board. That means imported goods and even U.S.-made products will cost more.
He also noted the economy was already showing signs of stress. High deficits, sticky inflation, and geopolitical instability were already weighing things down.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” Dimon wrote.
Still, he added, “I have an abiding faith in America.”
Goldman Sachs Predicts A Bigger Meltdown
Goldman Sachs didn’t hold back either.
Analysts there believe the tariff damage might already be irreversible. They now see recession risk rising sharply—even if Trump backs off.
The investment firm lowered its growth outlook. They blamed rising financial stress, global boycotts of U.S. goods, and policy chaos.
Even if the White House walked back the tariffs, Goldman said the damage might be done.
“Just avoiding a full collapse would now require a major rollback,” the report said.
Billionaire Backlash Hits Hard
Some of Trump’s usual allies are turning against him.
Hedge fund manager Bill Ackman ripped into the tariff blitz. He said Trump is “launching a global economic war against the whole world at once.”
Ackman warned of an “economic nuclear winter” and begged Trump to hit pause.
Top White House economic adviser Kevin Hassett fired back on Fox News.
He called the doomsday talk “completely irresponsible” and said critics are “exaggerating.”
Still, the cracks in the president’s coalition are beginning to show.
Trump Refuses To Back Down
Despite the chaos, Trump doubled down on his decision.
He defended the tariffs in a Truth Social post, blaming previous leaders for allowing foreign nations to exploit America.
“They’ve taken advantage of the Good OL’ USA for too long,” Trump wrote. “MAKE AMERICA GREAT AGAIN!”
He also blasted China for retaliating with its own tariff hikes. He warned other countries not to push back.
So far, that warning has gone unheeded.
Tariff Era Begins Wednesday
The new tariffs are set to begin Wednesday.
They will hit nearly all imports, raising the cost of everything from electronics to clothing.
Even American businesses are bracing. Companies rely on foreign suppliers and materials. Higher costs could get passed to consumers quickly.
Retailers, automakers, and tech firms are all on edge.
Many economists warn these tariffs could trigger layoffs and slow hiring.
Congress Starts To Push Back
While Trump stands firm, some Republicans are trying to rein him in.
A bipartisan bill has surfaced that would force future tariffs to be approved by Congress.
Senator Don Bacon, a Nebraska Republican, said the current approach gives too much power to the executive branch.
“We gave away that power. That was a mistake,” he said.
Still, the path to reining in Trump remains unclear.
Lawmakers admit the stock market crash and public pressure may decide what happens next.
What Happens Now?
No one knows how long the turmoil will last.
What is clear: this stock market crash has rattled confidence around the globe.
Markets hate uncertainty. And right now, Trump’s trade war has created a tidal wave of it.
With the clock ticking down to Wednesday’s tariff launch, investors and businesses can only wait—and brace.
