Market Meltdown: U.S. Stocks Face Bear Market Amid Tariff Turmoil

U.S. stock futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq dropped significantly as fears of a recession mount due to President Trump's tariff policies. The S&P 500 and Dow are nearing a bear market, while tech companies like Apple and Nvidia face substantial losses.

Stock futures connected to pivotal U.S. indexes, including the S&P 500 and Dow Jones, witnessed further declines, closing in on bear market territory. The Nasdaq confirmed an earlier bear market entry amid rising recession fears as a result of sweeping tariffs implemented by President Trump.

In an address on Sunday, Trump stated that investors need to take their 'medicine' due to the selloff and reaffirmed his position to not negotiate trade terms with China unless the deficit is resolved. By definition, an index reaches a bear market status when it drops over 20% from its previous peak.

The last time the S&P 500 found itself in similar waters was June 2022, during a period of heightened concern regarding the Federal Reserve's ability to curb post-pandemic inflation. Historical patterns reveal that nine out of twelve bear markets since 1948 have been paired with recessions, often influencing pessimism in the market.

Market forecasts predicting a looming U.S. recession were strengthened by analysts reacting to current fiscal upheavals. Traders have shown a keen interest in potential rate cuts, driven by Trump's unwavering tariff strategy, which some suggest represents a broader attempt to reshape America's economic stance globally.

Amid the turmoil, significant losses were recorded in heavyweight tech firms like Apple, Nvidia, and Microsoft, with the information technology subindex leading the downturn among S&P sectors in 2025.

(With inputs from agencies.)