On Monday, March 10, 2025, Wall Street experienced a significant sell-off, driven by escalating fears of a U.S. recession and ongoing trade disputes. The Dow Jones Industrial Average plummeted over 890 points, marking a decline of more than 2%. The S&P 500 and Nasdaq also suffered, dropping 2.7% and 4% respectively. Notably, Tesla’s shares plunged 15%, marking a 50% decline from its all-time high in December.
The market downturn is attributed to concerns over President Trump’s trade policies, particularly the recent implementation of 25% tariffs on imports from Mexico and Canada, and an increase to 20% on Chinese imports. In retaliation, China announced 10–15% tariffs on a range of American food imports, escalating fears of a global trade war.
European markets mirrored this negative sentiment, with Germany’s DAX, France’s CAC, and Italy’s FTSE MIB all closing lower. Analysts express concerns that the current U.S. administration’s approach could lead to further economic instability.
The volatility index, a measure of market fear, rose, reflecting increased uncertainty among investors. As trade tensions continue and recession fears mount, markets are expected to remain volatile in the coming weeks.
