Nasdaq Leads Wall Street Decline Amid Tariff War Fears

The Nasdaq led a Wall Street selloff, dropping over 3% amid fears of a tariff war-induced slowdown. The S&P 500 nears a critical support level, while the CBOE Volatility Index spikes. Defensive stocks gain slightly, but major tech and banking stocks slump. Recession risks rise with ongoing trade tensions.

The Nasdaq Composite plunged over 3% on Monday, guiding a widespread decline across Wall Street's major indices. Concerns over an escalating trade war have fueled fears of a potential economic slowdown, impacting market sentiment heavily.

Since December, the Nasdaq has fallen over 10%, marking a correction. Meanwhile, the S&P 500 edged closer to falling below its 200-day moving average — a key support level that analysts believe could trigger a deeper market selloff. Wall Street's fear gauge, the CBOE Volatility Index, rose more than 3 points, its highest since December 18.

Contributors to the decline included mega-cap growth stocks with Nvidia down 4.5% and Tesla sliding 8.6%. In contrast, defensive stocks like consumer staples saw mild gains. Uncertainties loom with impending U.S. and Chinese tariffs, further exacerbated by President Trump's variable trade policies.