On March 10, the US stock market experienced a significant downturn, influenced by concerns over President Trump's tariff policies and the rising risk of an economic recession.
By the close of trading, the Dow Jones Industrial Average had dropped 890.01 points, ending at 41,911.71, a decline of 2.08%. The S&P 500 index fell by 155.64 points to 5,614.56, marking a decrease of 2.70%. The Nasdaq Composite Index suffered the most substantial loss, plummeting 727.90 points to 17,468.33, a decline of 4.00%.
In sector performance, nine out of the eleven sectors in the S&P 500 index posted losses, with the technology and consumer discretionary sectors leading the decline at 4.34% and 3.90%, respectively. Conversely, the utilities and energy sectors saw modest gains, rising by 1.04% and 0.95%.
On March 9, US President Donald Trump defended his tariff policy, asserting that while his comprehensive economic agenda may lead to short-term turmoil, it will ultimately foster future prosperity. He did not rule out the possibility of a recession occurring in the US this year.
In an interview, when asked about the likelihood of an economic downturn, Trump responded that he wouldn't predict it. He claimed that the US government is bringing wealth back to America, but acknowledged that "it takes time." Trump also hinted at the possibility of continuing to impose additional tariffs.
Later that evening, when pressed again about a potential recession while on Air Force One, Trump remarked, "Who knows?" In contrast, US Commerce Secretary Howard Lutnick appeared on television the same day, clearly stating that the US will not go into recession.
Trump's economic agenda includes increased tariffs and reductions in government jobs. Economists warn that U.S. employment may weaken in the coming months due to government layoffs and the uncertainty stemming from tariff policies. Reports indicate that Trump's tariffs on key trading partners Canada and Mexico have already caused market turbulence. While investors were initially optimistic about Trump's second term, which helped boost US stocks at the end of last year, the market has recently declined. Trump, who frequently boasted about stock market performance during his first term.
On March 9, Howard Lutnick confirmed that Trump's proposed 25% tariffs on all steel and aluminum imports would take effect as scheduled on March 12.
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