{"id":129476,"date":"2025-03-10T22:15:56","date_gmt":"2025-03-10T22:15:56","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/stocks-sell-off-worsens-as-wall-street-wonders-how-much-pain-trump-will-accept-for-the-economy-the-associated-press\/"},"modified":"2025-03-10T22:15:56","modified_gmt":"2025-03-10T22:15:56","slug":"stocks-sell-off-worsens-as-wall-street-wonders-how-much-pain-trump-will-accept-for-the-economy-the-associated-press","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/stocks-sell-off-worsens-as-wall-street-wonders-how-much-pain-trump-will-accept-for-the-economy-the-associated-press\/","title":{"rendered":"Stocks' sell-off worsens as Wall Street wonders how much pain Trump will accept for the economy – The Associated Press"},"content":{"rendered":"

Copyright 2025 The Associated Press. All Rights Reserved.
President Donald Trump\u2019s flurry of tariffs, government layoffs and spending freezes may be doing more to harm the U.S. economy than to fix it.
Financial news is displayed as people work on the floor at the New York Stock Exchange in New York, Tuesday, March 4, 2025. (AP Photo\/Seth Wenig)
An NYSE sign is displayed on the floor at the New York Stock Exchange in New York, Thursday, Jan. 2, 2025. (AP Photo\/Seth Wenig, File)
President Donald Trump walks down the stairs of Air Force One upon his arrival at Joint Base Andrews, Md., Sunday, March 9, 2025. (AP Photo\/Luis M. Alvarez)
President Donald Trump\u2019s flurry of tariffs, government layoffs and spending freezes may be doing more to harm the U.S. economy than to fix it.
Financial news is displayed as people work on the floor at the New York Stock Exchange in New York, Tuesday, March 4, 2025. (AP Photo\/Seth Wenig)
Financial news is displayed as people work on the floor at the New York Stock Exchange in New York, Tuesday, March 4, 2025. (AP Photo\/Seth Wenig)
An NYSE sign is displayed on the floor at the New York Stock Exchange in New York, Thursday, Jan. 2, 2025. (AP Photo\/Seth Wenig, File)
An NYSE sign is displayed on the floor at the New York Stock Exchange in New York, Thursday, Jan. 2, 2025. (AP Photo\/Seth Wenig, File)
President Donald Trump walks down the stairs of Air Force One upon his arrival at Joint Base Andrews, Md., Sunday, March 9, 2025. (AP Photo\/Luis M. Alvarez)
President Donald Trump walks down the stairs of Air Force One upon his arrival at Joint Base Andrews, Md., Sunday, March 9, 2025. (AP Photo\/Luis M. Alvarez)
▶ Follow live updates on President Donald Trump and his new administration.<\/a><\/span><\/p>\n

NEW YORK (AP) \u2014 The U.S. stock market\u2019s sell-off <\/a><\/span> cut deeper on Monday as Wall Street questioned how much pain<\/a><\/span> President Donald Trump will let the economy <\/a><\/span> endure through tariffs and other policies in order to get what he wants.<\/p>\n

The S&P 500 dropped 2.7% to drag it close to 9% below its all-time high<\/a><\/span>, which was set just last month. At one point, the S&P 500 was down 3.6% and on track for its worst day since 2022. That\u2019s when the highest inflation in generations was shredding budgets and raising worries about a possible recession that ultimately never came.<\/p>\n

The Dow Jones Industrial Average dropped 890 points, or 2.1%, after paring an earlier loss of more than 1,100, while the Nasdaq composite skidded by 4%. <\/p>\n

It was the worst day yet in a scary stretch<\/a><\/span> where the S&P 500 has swung more than 1%, up or down, seven times<\/a><\/span> in eight days because of Trump\u2019s on<\/a><\/span> -and- off<\/a><\/span> -again tariffs<\/a><\/span>. The worry is that the whipsaw moves will either hurt the economy directly or create enough uncertainty to drive U.S. companies and consumers into an economy-freezing paralysis.
The AP\u2019s Seth Sutel reports Wall Street wonders how much pain Trump will accept for the economy.<\/p>\n

The economy has already given some signals of weakening, mostly through surveys showing increased pessimism<\/a><\/span>. And a widely followed collection of real-time indicators compiled by the Federal Reserve Bank of Atlanta <\/a><\/span> suggests the U.S. economy may already be shrinking. <\/p>\n

Asked over the weekend whether he was expecting a recession in 2025, Trump told Fox News Channel<\/a><\/span>: \u201cI hate to predict things like that. There is a period of transition because what we\u2019re doing is very big. We\u2019re bringing wealth back to America. That\u2019s a big thing.\u201d He then added, \u201cIt takes a little time. It takes a little time.\u201d<\/p>\n

Trump says he wants to bring manufacturing jobs back to the United States, among other reasons he\u2019s given for tariffs. His Treasury secretary, Scott Bessent, has also said the economy may go through a \u201cdetox\u201d period as it weans off an addiction to spending by the government. The White House is trying to limit federal spending, while also cutting the federal workforce and increasing deportations<\/a><\/span>, which could hinder the job market. <\/p>\n

The U.S. job market is still showing stable hiring<\/a><\/span> at the moment, to be sure, and the economy ended last year running at a solid rate<\/a><\/span>. But economists are marking down their forecasts for how the economy will perform this year. <\/p>\n

At Goldman Sachs, for example, David Mericle cut his estimate for U.S. economic growth to 1.7% from 2.2% for the end of 2025 over the year before, largely because tariffs look like they\u2019ll be bigger than he was previously forecasting. <\/p>\n

He sees a one-in-five chance of a recession over the next year, raising it only slightly because \u201cthe White House has the option to pull back policy changes\u201d if the risks to the economy \u201cbegin to look more serious.\u201d<\/p>\n

\u201cThere are always multiple forces at work in the market, but right now, almost all of them are taking a back seat to tariffs,\u201d according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.<\/p>\n

In response to the market sell-off, White House spokesman Kush Desai noted that a number of companies have responded to Trump\u2019s \u201cAmerica First\u201d economic agenda with \u201ctrillions in investment commitments that will create thousands of jobs.\u201d <\/p>\n

Trump met on Monday with tech industry CEOs, but the event was closed to the news media. <\/p>\n

The worries hitting Wall Street have so far been hurting some of its biggest stars the most. Big Tech stocks and companies that rode the artificial-intelligence <\/a><\/span> frenzy in recent years have slumped sharply. <\/p>\n

Nvidia<\/a><\/span> fell another 5.1% Monday to bring its loss for the year so far to more than 20%. It\u2019s a steep drop-off from its nearly 820% surge over 2023 and 2024.<\/p>\n

Elon Musk\u2019s Tesla fell 15.4% to deepen its loss for 2025 to 45%. After getting an initial post-election bump <\/a><\/span> on hopes that Musk\u2019s close relationship with Trump would help the electric-vehicle company, the stock has slumped on worries that its brand has become intertwined <\/a><\/span> with Musk. Protests against the U.S. government\u2019s efforts to cull its workforce <\/a><\/span> and other moves have targeted Tesla dealerships, for example. <\/p>\n

Stocks of companies that depend on U.S. households feeling good enough about their finances to spend also fell sharply. Cruise-ship operator Carnival dropped 7.6%, and United Airlines lost 6.3%.<\/p>\n

It\u2019s not just stocks struggling. Investors are sending prices lower for all kinds of investments whose momentum had earlier seemed nearly impossible to stop at times, such as bitcoin. The cryptocurrency\u2019s value has dropped below $80,000 from more than $106,000 in December. <\/p>\n

Instead, investors have bid up U.S. Treasury bonds as they look for things whose prices can hold up better when the economy is under pressure. That has sent prices for Treasurys sharply higher, which in turn has sent down their yields.<\/p>\n

The yield on the 10-year Treasury tumbled again to 4.22% from 4.32% late Friday. It\u2019s been dropping since January, when it was approaching 4.80%, as worries about the economy have grown. That\u2019s a major move for the bond market. <\/p>\n

All the uncertainty, though, hasn\u2019t shut down dealmaking on Wall Street. Redfin\u2019s stock jumped 67.9% after Rocket said it would buy the digital real estate brokerage in an all-stock deal valuing it at $1.75 billion. Rocket\u2019s stock sank 15.3%.<\/p>\n

ServiceNow fell 7.9% after the AI platform company said it was buying AI-assistant maker Moveworks for $2.85 billion in cash and stock.<\/p>\n

All told, the S&P 500 fell 155.64 points to 5,614.56. The Dow Jones Industrial Average dropped 890.01 to 41,911.71, and the Nasdaq composite sank 727.90 to 17,468.32.<\/p>\n

In stock markets abroad, European indexes largely fell following a mixed session in Asia.<\/p>\n

Indexes fell 1.8% in Hong Kong and 0.2% in Shanghai after China said consumer prices<\/a><\/span> fell in February for the first time in 13 months. It\u2019s the latest signal of weakness for the world\u2019s second-largest economy, as persistent weak demand was compounded by the early timing of the Lunar New Year holiday.<\/p>\n

AP Business Writers Matt Ott, Elaine Kurtenbach and Josh Boak contributed. <\/p>\n

Copyright 2025 The Associated Press. All Rights Reserved.<\/p>\n

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