Dow Jones plummets 900 points as economic fears grow

• The Dow Jones backslid another 900 points on Monday.
• Investor sentiment continues to worsen as market mood sours.
• Key US CPI and PPI inflation prints are due later this week.

The Dow Jones Industrial Average (DJIA) took another leg lower on Monday, kicking off the new trading week with a fresh 900-point decline. The Dow Jones backslid into fresh lows below 42,000 as fears of an economic downturn continue to grow and the Trump administration roils global markets with its haphazard, on-again-off-again tariff policy.

It’s a quiet start to the week on the economic data docket, but that all changes on Wednesday when the latest round of Consumer Price Index (CPI) inflation figures for February hit markets. Median market forecasts expect a slight cooling in headline and core CPI numbers. Headline CPI inflation in February is expected to ease to 0.3% MoM from 0.5%, while core monthly CPI is expected to tick down to a matching 0.3% from 0.4%. Annualized CPI is similarly expected to drop slightly to 2.9% YoY from 3.0%, while core CPI for the year ended in February is forecast t tick down to 3.2% from 3.3%. 

Despite their ambiguous existence, markets are still feeling the bearish pressure from US President Donald Trump’s ham-handed tariff threats, which the Trump administration continues to pivot endlessly around. The White House team is struggling to enact steep tariffs on the US’ closest trading partners to generate government income to offset steep deficits coming from President Trump’s planned tax cuts. However, execution is proving difficult as the loudest opponents to team Trump’s tariff proposals are overwhelmingly US consumers and businesses facing steep spending and operating cost increases as counter-tariffs target key US industries and sectors.

The Trump administration faced down questions about a possible recession in the US economy, waving the subject off and branding an economic downturn as a “transition” period. 

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Despite Monday’s steep decline in the overall index, some listed securities held on the high side for the day. Amgen (AMGN) rose 2.3%, climbing above $332 per share as the pharma giant explores adding its own weight loss drug to the field.

Losses were concentrated in tech and banking stocks on Monday, with Goldman Sachs (GS) falling 6%. Goldman Sachs sank to $526 per share as recession fears and tariff concerns weighed on profit-led industries.

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The Dow Jones Industrial Average pierced the Exponential Moving Average (EMA) just below the 42,000 major price handle for the first time since November of 2023, hitting the major moving average for the first time in over two years and ending the Dow’s stellar run of outpacing its own long-term moving average,  The Dow Jones hit a fresh 8-week low on Monday, adding to the major equity index’s 6.55% decline from the last swing high just above the 45,000 level.

Dow Jones daily chart