to endure in order to get what he wants.
. The Dow Jones Industrial Average was down 405 points, or 0.9%, as of 11:20 a.m. Eastern time, and the Nasdaq composite was 3.6% lower.
set on Feb. 19.
suggests the U.S. economy may already be shrinking.
: “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.” He then added, “It takes a little time. It takes a little time.”
Trump says he wants to bring manufacturing jobs back to the United States, among other reasons he’s given for tariffs. His Treasury secretary, Scott Bessent, has also said the economy may go through a “detox” period as it weans itself off an addiction to spending by the government.
. But economists are marking down their forecasts for how the economy will perform this year.
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’ll be bigger than he was previously forecasting.
He sees a one-in-five chance of a recession over the next year, raising it only slightly because “the White House has the option to pull back policy changes” if the risks to the economy “begin to look more serious.”
“There are always multiple forces at work in the market, but right now, almost all of them are taking a back seat to tariffs,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.
frenzy in recent years have slumped sharply.
fell another 4.9% Monday to bring its loss for the year so far to 20.2%. It’s a steep drop-off from its nearly 820% surge over 2023 and 2024.
and other moves have targeted Tesla dealerships, for example.
Stocks of companies that depend on U.S. households feeling good enough about their finances to spend also tumbled sharply. United Airlines lost 8.3%, and cruise-ship operator Carnival fell 8.2%.
It’s 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’s value has dropped back toward $80,000 from more than $106,000 in December.
Instead, investors have been herding into 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.
The yield on the 10-year Treasury tumbled again to 4.21% from 4.32% late Friday. It’s been dropping since January, when it was approaching 4.80%, as worries about the economy have grown. That’s a major move for the bond market.
All the uncertainty, though, hasn’t shut down dealmaking on Wall Street. Redfin’s stock jumped 68.1% after Rocket said it would buy the digital real estate brokerage in an all-stock deal valuing it at $1.75 billion. Rocket’s stock sank 14.9%.
ServiceNow fell 6.3% after the AI platform company said it was buying AI-assistant maker Moveworks for $2.85 billion in cash and stock.
In stock markets abroad, European indexes largely fell following a mixed session in Asia.
fell in February for the first time in 13 months. It’s the latest signal of weakness for the world’s second-largest economy, as persistent weak demand was compounded by the early timing of the Lunar New Year holiday.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
