Market Turmoil: The Dip That Shook Wall Street

U.S. stocks tumbled amid fears of a recession due to tariff disputes and concerns over a potential federal government shutdown. Major indexes suffered significant declines, while tech stocks were pressured by a stronger yen and rising bond yields. The economic outlook remains uncertain as government and market anxieties amplify.

U.S. stock markets plunged on Monday as ongoing tariff disputes and anxieties over a possible federal government shutdown stoked fears of an impending recession in the U.S. economy.

All three major U.S. indexes saw sharp declines, continuing the previous week's selloff. The tech-heavy index fell over 10% from its record high, entering correction territory. The S&P 500 dropped below its 200-day moving average for the first time since November 2023, a key support level that signals investor caution.

Amid uncertainty, the U.S., Canada, and Mexico face growing recession risks. Investors are wary as tech stocks slump under pressure from a strong yen and increased bond yields. The unwinding yen carry trades partly fueled the selloff in major tech stocks, with economic outlook remaining grim.