U.S. Stock Market Tumbles Amid Global Trade Concerns

U.S. stock index futures fell as trade tensions with China and bearish forecasts for Tesla impacted confidence. Dow, S&P 500, and Nasdaq indices all reported declines, while investors found solace in Treasury bonds. Concerns over potential recession are heightened due to fluctuating trade policies.

On Monday, U.S. stock index futures took a hit as ongoing worries about tit-for-tat tariffs threatened to impact the global economy. Notably, electric-vehicle maker Tesla faced additional pressure following a pessimistic forecast by a brokerage firm.

As of 07:16 a.m. ET, the Dow E-minis had dropped 389 points, a decline of 0.91%. Similarly, the S&P 500 E-minis were down 61 points, or 1.06%, and the Nasdaq 100 E-minis fell 242 points, or 1.21%. Major growth stocks, including Nvidia, Meta, and Amazon, were also feeling the pressure.

In light of these developments, investors are concerned about the possibility of recession, especially given the shifting trade policies involving Mexico, Canada, and China under President Trump. Meanwhile, tensions with China continue to escalate, as retaliatory tariffs on certain U.S. imports go into effect.

(With inputs from agencies.)