Market Jitters: Tech Stocks Lead Declines Amid Trade War Fears

The S&P 500 and Nasdaq fell heavily as technology stocks plunged amid fears of global economic slowdowns triggered by Trump's new tariff plans. Interest in safe-haven assets rose, with gold surging and bond yields falling, while stock market volatility increased. Economic data and Fed announcements are closely watched.

The S&P 500 and Nasdaq experienced significant declines on Monday, with technology stocks taking the hardest hit as investors pulled back from risk-heavy assets. The move comes as uncertainty looms over President Donald Trump's forthcoming tariff announcements, which are expected to impact global economic growth.

President Trump's decision to extend tariffs to all nations has already affected industries relying on aluminum, steel, and autos, with increased levies on Chinese goods raising further concerns. "There's considerable apprehension surrounding Trump's announcement," stated Mark Luschini, chief investment strategist at Janney Montgomery Scott.

As investors grapple with the ripple effects of these tariffs, the possibility of a broader economic slowdown has become a predominant concern, with the Goldman Sachs pegging the chance of a U.S. recession at 35%. Meanwhile, technology stocks such as Nvidia and Microsoft saw substantial declines in valuation as apprehensions grow over companies' AI investment plans.