The tariff policy implemented by US President Donald Trump has scared investors as he has raised fears of a possible recession of the US economy.

These fears have, in turn, caused a sell-off on the US stock market, which has been overwhelming 4 trillion. Dollars from the capitalization of large capitalization companies that make up the S&P 500 index compared to the high record last month, when Wall Street still greeted much of Trump’s agenda, according to Reuters.

A series of moves by US president since then, and in particular Trump’s front-backs regarding duties on the products of major US partners, such as Canada, Mexico and China, has intensified the uncertainty in businesses, consumers and investors.

“We observe a clear, significant climate change,” notes Ayako Yoshioka, a senior investment strategy consultant at Wealth Enhancement.

The sell-off on the US Stock Exchange worsened on Monday, with the high capitalization index of S&P 500 sliding 2.7% lower, marking its highest daily decline this year, and Nasdaq’s techno-speaking 4% dip, recording the largest dive.

S&P 500 even closed on Monday 8.6% lower than historical high recorded on February 19, losing more than 4 trillion. dollars in stock market valuefar from the threshold of -10% that marks the entry of the index in a correction area. A limit exceeded by the Nasdaq techno -tart last Thursday, when his losses from December 2024 exceeded 10%.

The reason for the clever deterioration of the investment climate on Monday was Donald Trump’s refusal at the weekend to appreciate If the US economy is in danger of entering recessionsomething that worries investors because of the commercial policy that follows.

“The uncertainty caused by the duty wars with Canada, Mexico and Europe, pushes boards and business executives to review their strategies,” said Peter Orszag, CEO of Lazard, at the CAEREEK conference in Houston.

“People can understand ongoing tensions with China, but the issue with Canada, Mexico and Europe is confusing. If this is not resolved within the next month or something, it could essentially hurt the financial prospects of the US and mergers and acquisition movements, “Orszag added.

Indicative of the climate between businesses was the Delta Air Lines move on Monday to half of its estimates of first quarter profits, which led to a 14% drop in post -conference transactions, with the CEO of the airline.

“The Trump government seems to accept a little more the idea that it is not a problem for market retreat, and Possibly is ok even with a recession In order to achieve its broader goals, “said Ross Meyfield, an investment strategy consultant at Baird yesterday. “I think it’s an important bell waking bell for Wall Street,” he added.

It is noted that The S&P 500 index has recorded earnings over 20% in 2023 and 2024guided by the shares of the technology companies of the large capitalization and technology -related companies, such as the NVIDIA semiconductor colossus and the Tesla electric vehicle company, which do not do so well so far this year, acting as “weights” for Wall Street indicators.

It is indicative that on Monday the technology industry of the S&P 500 index scored 4.3%, with Apple and Nvidia to mark both losses of about 5% and the Tesla to slide 15% lower, losing about $ 125 billion in capitalization.

The latest fall of the S&P 500, however, not only has all erased all the profits that the index had recorded from Trump’s election on November 5, but has led the index almost 3% lower.

But even after the recent sell-off, stock market valuations remain significantly higher that historical averages. The S&P 500 on Friday negotiated with P/E just more than 21 times the estimated earnings of next year, compared to the historical average of 15.8 times, according to LSEG Datastream data.

“Many people have been worried about high US stock values ​​for some time now and are looking for the catalyst that will lead to market correction,” notes Dan Catsworth, an investment analyst in AJ Bell. “The combination of concerns about a trade war, geopolitical tensions and uncertainty about the prospects of the economy could be this catalyst,” he adds.

Another indication of the growing concern of investors is the evolution of CBOE Volatility Indexwhich closed on Monday at the highest level since August 2024.