Dow Drops 890 Points, Nasdaq Falls 4% in Worst Day of 2025; S&P Hits September Low

Wall Street faced a major downturn on Monday, with the Dow Jones Industrial Average closing down 890 points, or 2.1%, after recovering from an earlier loss of over 1,100 points. The S&P 500 fell 2.7%, nearing 9% below its all-time high from the previous month, and dropped as much as 3.6% intraday, marking its worst single-day decline since 2022. The Nasdaq Composite dropped 4%, its worst day in 2025. The sell-off is linked to economic uncertainties, including tariffs and fears of a potential recession. President Donald Trump has described the situation as a 'period of transition,' citing efforts to bring manufacturing jobs back to the U.S. through tariffs. The S&P 500 also hit its lowest level since September 12 during the session. Big Tech stocks and AI-related companies were particularly affected, with Nvidia falling 5.1% and Tesla dropping 15.4%, deepening Tesla's year-to-date losses to 45%. Stocks dependent on consumer spending, such as Carnival and United Airlines, also saw sharp declines, falling 7.6% and 6.3%, respectively. Bitcoin's value also dropped below $80,000, reflecting broader market pressures. Investors shifted to safer assets, pushing U.S. Treasury bond prices higher and driving the yield on the 10-year Treasury down to 4.22% from 4.32% late Friday. The S&P 500 has now experienced swings of more than 1% in seven of the last eight trading sessions, underscoring ongoing market instability.