Market Turmoil: Wall Street Faces Fresh Pressures

U.S. stock indexes continued to decline as investors reacted to President Trump's tariff policies on China. The major indexes hit one-year lows amid concerns over economic slowdown and rising inflation. A brief market rally was cut short by denials of a possible tariff pause, causing further market instability.

In another turbulent session, U.S. stock indexes plummeted in afternoon trading on Monday. Investors withdrew for a third consecutive day amid heightened fears about President Donald Trump's tariff agenda against China, which threaten to exacerbate economic slowdown and spur inflationary pressures.

This downturn put all three major U.S. indexes at over one-year lows. Highlighting Wall Street's anxieties, the CBOE Volatility Index surged to a peak not seen since August 2024. Commentators, like UBS's chief strategist Bhanu Baweja, noted the shock factor for investors who initially underestimated Trump's commitment to tariffs.

The technology sector bore the brunt of sell-offs, with key players such as Apple, Microsoft, and Tesla seeing significant losses. The market briefly rallied on reports of a possible 90-day pause on tariffs, but corrections from White House officials swiftly reversed those gains.

(With inputs from agencies.)