U.S. Markets Plunge: Bear Market Concerns Rise Amid Tariff Turmoil

The U.S. stock market faces uncertainty as the S&P 500 index falls over 20% from its peak, entering bear market territory. Concerns about a recession grow following President Trump's tariffs. The Dow and Nasdaq suffer significant declines, impacting major tech firms like Apple, Nvidia, and Microsoft.

The S&P 500 index suffered further declines on Monday, sinking over 20% from its historical highs, confirming bear market status as per traditional definitions. The downturn reflects mounting recession fears sparked by President Donald Trump's controversial tariffs, which have placed global markets on edge.

Historical patterns indicate that bear markets frequently coincide with recessions. The last confirmed bear market for the S&P 500 surfaced in June 2022 amid concerns about the Federal Reserve's capacity to control post-pandemic inflation. Nine out of 12 bear markets since 1948 have led to recessions, according to CFRA.

Investors received a stern warning from Trump, who indicated that they need to brace for more economic medicine unless trade issues, particularly with China, are resolved. As Wall Street brokers increase recession probabilities, tech giants such as Apple, Nvidia, and Microsoft see heavy losses, dragging down the S&P's tech-heavy subindex.

(With inputs from agencies.)