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U.S. STOCKS SLUMP TO START THE TRADING WEEK

U.S. stocks stumbled out of the gate to begin the trading week, tripped up by growing concerns about the shifting tariff landscape pushing the U.S. into a recession, with an unwind of the yen carry trade also supplying pressure.

On Sunday, President Donald Trump declined to predict whether the U.S. could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.

"The Trump administration seems a little more accepting of the idea that they're OK with the market falling, and they're potentially even OK with a recession in order to exact their broader goals, that's a big wake up call for Wall Street," said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky.

"There had been a sense that President Trump kind of measured his success on stock market performance, there was even somewhat of a 'Trump put' so to speak, and we're seeing that's not the case, so the market is starting to reflect that reality."

Analysts also pointed to a strengthening in the yen and climb in Japanese bond yields as the Bank of Japan is seen as more likely to hike interest rates this year while the Federal Reserve is widely expected to lower rates.

The carry trade involved borrowing yen at a low cost in order to invest in other assets offering higher yields, such as U.S. growth stocks such as Tesla TSLA.O and Nvidia NVDA.O.

The S&P 500 growth index .IGX dropped 3.8%, its biggest daily percentage drop since September 2022. Tesla plummeted more than 15% and Nvidia tumbled more than 5% on the session. Tesla plunge was its largest since September 2020.

The declines marked the largest for the S&P .SPX since December 18 and for the Nasdaq .IXIC, its biggest since September 2022.

Below is your closing market snapshot:

(Chuck Mikolajczak/Lisa Mattackal)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

US Q1 EARNINGS FORECASTS DOWN SINCE START OF YEAR - CLICK HERE

0DTE OPTIONS HEAT UP AS EQUITY VOLATILITY SOARS - CLICK HERE

GIVEN TARIFF WAR, BE MORE TACTICAL, SAYS CROSSMARK GLOBAL- CLICK HERE

TIGHTENING THEIR PURSE STRINGS: CONSUMERS PUT THE BRAKES ON CREDIT BALANCE GROWTH - CLICK HERE

U.S. STOCKS SLUMP IN EARLY TRADE - CLICK HERE

S&P 500 INDEX: DOWNSIDE STILL BECKONS - CLICK HERE

WHEN COULD THE EURO'S RISE HURT EARNINGS? - CLICK HERE

GERMANY'S DEBT BRAKE REFORM: FAR FROM A DONE DEAL - CLICK HERE

BUYBACKS TO THE RESCUE? - CLICK HERE

"EUROZONE SHORT TERM LOOKS OVERBOUGHT" - CLICK HERE

VOLATILITY STAYS HIGH, STOXX DIPS - CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES BOUNCE BACK - CLICK HERE

TRUMP'S TARIFFS RAISE RECESSION RED FLAGS - CLICK HERE