Markets Tumble Amid Trade War Fears and Tesla Downturn

Wall Street indices anticipated a lower opening on Monday due to trade war concerns fueled by President Trump's remarks. Tesla shares fell after a bearish forecast while bank stocks also declined. Investors turned to Treasury bonds as uncertainties over tariffs continued to loom.

Wall Street is bracing for a dip as President Trump's weekend statements exacerbate fears of a trade war-induced economic slowdown. On Monday, early trading forecasts show significant drops in major indices, including a 1.13% decrease in Dow E-minis and a 1.70% dip in Nasdaq 100 E-minis.

Tesla's stock fell by 3.7% after UBS revised its first-quarter delivery predictions downward and lowered the price target for the automotive giant. In parallel, big banks like JPMorgan Chase and Goldman Sachs faced declines of over 2%, resulting in the broader banks index sliding over 8% this March.

As new tariffs from China take effect and with additional U.S. tariffs anticipated, market uncertainty remains rife. The CBOE Volatility Index approaches levels not seen since December, while U.S.-listed Chinese tech stocks like Alibaba witness slumps. Guidance from Federal Reserve officials brings slight relief, although caution prevails over potential interest rate adjustments.

(With inputs from agencies.)