MARKET SNAPSHOT

U.S. stocks sank and Treasury yields declined sharply as markets worried that a recession could be coming. The dollar ended stronger. Crude prices ended lower on heightened prospects for more crude supply should a Russia-Ukraine peace deal arise. Gold prices fell.

MARKET WRAPS

EQUITIES

Stocks slid as concerns about the U.S. economy tipping into a recession grew.

The Dow Jones Industrial Average gave up nearly 2.1%, the S&P 500 fell 2.7%, and the Nasdaq Composite tumbled 4% as shares of big tech companies extended their selloff. Tesla's stock lost 15%. Shares of the other Magnificent Seven stocks -- Apple, Microsoft, Alphabet, Amazon.com, Nvidia and Meta Platforms -- fell between 2% and 5%.

President Trump over the weekend refused to rule out the U.S. entering a recession this year, telling Fox News there will be a "period of transition, because what we're doing is very big." In contrast, Commerce Secretary Howard Lutnick told NBC News: "There's going to be no recession in America."

Earlier Monday, Chinese shares ended mostly lower, weighed by telecom and software stocks. Investors' sentiment was likely weighed by China's worse-than-expected consumer-price decline in February, which showed policymakers' challenges in stimulating domestic demand. Pharmaceutical stocks were broadly higher.

The benchmark Shanghai Composite Index ended 0.2% lower, the Shenzhen Composite Index was flat, and the ChiNext Price Index shed 0.25%. Hong Kong's Hang Seng Index fell 1.9%, weighed down by consumer stocks.

Japan's Nikkei Stock Average ended 0.4% higher as gains in auto and tech shares helped offset losses in heavy-industry and pharmaceutical stocks. The broader Topix index fell 0.3%.

Stocks in Australia were higher, as the S&P/ASX 200 rose 0.2%, snapping a four-day losing streak. The blue-chip S&P/ASX 20 Index, which includes the country's major banks and iron-ore miners, held steady.

New Zealand's NZX-50 index closed 0.9% higher as utility, aged-care, property and logistics stocks were among the gainers. Only one of the 16 largest companies by market capitalization finished lower.

COMMODITIES

Oil futures settled lower, dragged down by fears that rising global trade tensions could spark a recession or a slowdown, as U.S. equities suffered their worst day of 2025.

West Texas Intermediate crude for April delivery lost 1.5%, to finish at $66.03 a barrel. May Brent crude, the global benchmark, dropped 1.5% to settle at $69.28 a barrel.

The prospect of Trump administration efforts leading to a cease-fire between Russia and Ukraine has "greatly increased," and should the war come to an end sooner than expected, it's likely sanctions on Russia's energy industry could be lifted, adding a sizeable amount of crude to the global market, wrote analysts at Sevens Report Research.

Front month March gold lost 0.5% to $2891.00 -- lower for two consecutive sessions.

TODAY'S TOP HEADLINES

The Mounting Case Against U.S. Stocks

A new round of recession fears rattled markets Monday, sending the Dow Jones Industrial Average down more than 1000 points and eroding Wall Street consensus that U.S. stocks would be among this year's biggest winners.

Many investors had anticipated that American exceptionalism-the perceived advantages the U.S. has over other countries, such as its economic strength and technological innovations-would help drive another year of robust stock gains.

But worries about a trade war, signs of flagging growth and splinters in the artificial-intelligence trade have taken some of the shine off that optimism. President Trump over the weekend refused to rule out a recession this year, setting off a fresh wave of declines in U.S. stocks. The S&P 500 fell 3%, while tech-heavy Nasdaq Composite lost more than 4.5%. Bank stocks slid, along with shares of smaller companies perceived to be sensitive to the economy. Bonds rallied.

Ontario Confirms 25% Surcharge on Electricity Shipped to U.S.

OTTAWA-The Canadian province of Ontario officially imposed Monday a 25% surcharge on all its electricity exports to the U.S., and warned that it is prepared to raise that levy or cut off power to their southern neighbor should President Trump escalate the crossborder trade conflict.

Ontario Premier Doug Ford said last week he would take this measure due to the continued tariff threats against Canada by the Trump administration. And with Monday's announcement, he followed through on his promise to slap the surcharge even after President Trump offered last week a partial reprieve on 25% tariffs for another month. The surcharge will affect roughly 1.5 million households and businesses in the states of New York, Michigan and Minnesota.

"Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent," Ford said. He added he wouldn't hesitate to either increase the charge or cut off power completely depending on the Trump administration's tariff policy, including whether the 25% tariffs return in April after a one-month reprieve.

Trump Declines to Rule Out Recession

WASHINGTON-President Trump declined to rule out that the U.S. economy would contract this year and enter a recession, saying that his sweeping economic agenda could cause short-term turbulence that he believed would drive future prosperity.

Asked in a "Sunday Morning Futures" interview on Fox News if he was expecting a recession this year, Trump replied: "I hate to predict things like that. There is a period of transition because what we're doing is very big."

Trump has moved to overhaul the U.S. economy in an agenda focusing on new tariffs, limiting immigration and cutting regulations, government jobs and taxes. He is also looking for spending cuts in a number of federal programs. While many businesses have cheered his broader agenda, the uncertainty over tariffs on close trading partners Mexico and Canada has rattled markets. He has proposed and pulled back tariffs multiple times in just the past few months.

Energy Secretary Pushes for Natural Gas Pipelines, Exports. Oil Slumps on Tariff Threat.

HOUSTON-The Trump administration is clearing the way for an upsurge in natural gas production and exports, Energy Secretary Chris Wright said on Monday.

That includes pushing for new gas pipelines in places like Alaska and New England, and approving permits to ship natural gas overseas.

"Drill, baby, drill also requires build, baby, build," Wright told an energy conference in Houston.

Delta cuts its outlook. Here's what's worrying the airline.

Shares of Delta Air Lines Inc. dropped more than 9% in the extended session Monday after the airline slashed its first-quarter estimates, seeing trouble ahead for demand for its domestic flights.

"The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand," Delta DAL said in a filing.

"Premium, international and loyalty revenue-growth trends are consistent with expectations and reflect the resilience of Delta's diversified revenue base," it said.

Oracle Misses on Earnings. The Stock Is Still Rising on New Deals with Nvidia, Meta, and OpenAI.

Oracle stock was rising in late trading Monday despite the company reporting fiscal third-quarter results below Wall Street's estimates.

Oracle posted adjusted earnings of $1.47 a share on revenue of $14.13 billion. Analysts surveyed by FactSet expected the information-technology company to post earnings of $1.49 a share on revenue of $14.38 billion.

Shares were up 6% after the market closed following the earnings release. The company said it signed cloud agreements with several major tech companies, including OpenAI, Meta Platforms and Nvidia, which would help drive a 15% increase in overall revenue in the next fiscal year.

Expected Major Events for Tuesday

00:00/AUS: Mar Westpac - Melbourne Institute Consumer Sentiment Survey

00:30/AUS: Feb NAB Business Survey

04:01/MAL: Jan Labour Force Statistics

06:00/JPN: Feb Preliminary Machine Tool Orders

21:45/NZ: Feb Electronic Card Transactions

23:00/SKA: Feb Economically Active Population Survey, including Unemployment

23:50/JPN: Feb Corporate Goods Price Index

23:50/JPN: 1Q Business Outlook Survey

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

March 10, 2025 16:50 ET (20:50 GMT)

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