Stocks slump after Trump declines to rule out recession

U.S. stocks dropped in early trading on Monday, suffering widespread losses a day after President Donald Trump declined to rule out the possibility of a recession.

The Dow Jones Industrial Average fell 515 points, or 1.2%; while the S&P 500 declined 1.4%. The tech-heavy Nasdaq plummeted nearly 2%.

Tesla, the electric carmaker led by Elon Musk, sank nearly 6%. United Airlines and Delta each fell more than 5.5%.

The selloff extended a drop-off from the previous week amid uncertainty stoked by Trump levying tariffs against Canada, Mexico and China, some of which were withdrawn or delayed. The S&P 500 recorded its worst week since September.

When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”

“I hate to predict things like that,” Trump told Fox News in an interview taped on Thursday. “It takes a little time, but I think it should be great for us.”

In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”

Since Inauguration Day, the Dow Jones Industrial Average has fallen 2.5%. The S&P 500 has dropped 5% over that period, while the Nasdaq has plummeted 9%.

This is a developing story. Please check back for updates.