Kohl's Corporation (KSS) stock plunged 9.62% in pre-market trading on Monday, as the retail sector faced a significant sell-off amid growing recession concerns and the impact of newly announced tariffs. The dramatic decline in Kohl's shares reflects broader market turbulence, with futures tied to the S&P 500 falling into bear market territory.

The retail industry is bearing the brunt of investor anxiety following U.S. President Donald Trump's recent announcement of sweeping tariffs. These measures have intensified fears of an economic downturn, leading to a widespread retreat from consumer discretionary stocks. Kohl's was not alone in its decline, as other major retailers also experienced substantial drops in their stock prices. Macy's fell 7.7%, while industry giants Walmart and Target saw declines of 3% and 3.5%, respectively.

The sell-off in retail stocks underscores the sector's vulnerability to economic uncertainties and trade tensions. Year-to-date, the S&P 500 Consumer Discretionary Distribution & Retail Index has already fallen over 16%, highlighting the challenges facing retailers in the current economic climate. As recession fears mount and consumer spending projections become increasingly uncertain, investors appear to be reassessing their positions in retail stocks, contributing to the sharp decline in Kohl's share price.