By Joe Woelfel

Stock futures were plunging Monday and pointing to a third-straight selloff as Wall Street priced in the possible risks of a worldwide recession following President Donald Trump's plan for sweeping global tariffs. The S&P 500 was set Monday to open in a bear market.

These stocks were poised to make moves Monday:

Bank stocks plunged again Monday as global recession fears mounted. A number of major U.S. banks are scheduled to kick off earnings season Friday. Their stocks plunged last Thursday and Friday with the group having its worst two-day decline since March 2020. "Tariffs have inflamed fears of a potential recession that would likely lead to reduced loan demand and more delinquencies," said Gene Goldman, chief investment officer of wealth manager Cetera Financial Group, last week. JPMorgan Chase was down 4.8% in premarket trading, Morgan Stanley tumbled 6.1%, and Wells Fargo was falling 4.7%.

Tesla declined 6.9% in premarket trading after dropping 10% on Friday to $239.43 and pushing shares of the electric-vehicle maker down 50.1% from its all-time closing high of $479.86 last December. Tesla dropped 9.2% last week, marking the stock's 10th down week in the past 11. Wedbush analyst Dan Ives, a longtime Tesla bull, reduced his price target on the stock to $315 a share from $55o, with Ives writing in a research note that a brand crisis created by CEO Elon Musk, combined with the Trump tariffs, equaled a "perfect storm for Tesla." Ives still rates the shares a Buy.

Apple fell 4.1% in premarket trading to $180.71 after the iPhone maker declined 7.3% on Friday. Wedbush's Ives cut his price target on the stock to $250 from $325. Apple's market cap sank $443.5 billion last week, the largest weekly market cap decline on record, according to Dow Jones Market Data. The stock dropped 13.6% last week, its worst week since the week ended March 30, 2020, when it plummeted nearly 18%. A large majority of Apple's products are assembled in China, which retaliated Friday to Trump's tariffs by launching a 34% levy on all imported goods from the U.S., effective Thursday.

Shares of artificial-intelligence chip maker Nvidia were down 4.5% in premarket trading. Nvidia fell 7.4% on Friday and 14% for the week, the stock's worst week since late January when it tumbled almost 16%. Shares have fallen 30% this year.

U.S.-listed shares of Chinese companies such as Alibaba, PDD Holdings fell 7.7%, and JD.com tumbled in premarket trading as stocks in Shanghai fell 7.3% after China said it would hit all U.S. goods with an additional 34% tariff.

Eli Lilly fell 4% and U.S.-listed shares of Novo Nordisk were down 1.2% after the Trump administration said Friday that Medicare and Medicaid won't be expanding coverage for anti-obesity medications. A proposal issued late last year by the Biden administration would have allowed Medicare and Medicaid to pay for drugs such as Lilly's Zepbound and Novo Nordisk's Wegovy, according to The Wall Street Journal. Health and wellness platform Hims & Hers declined 8.4%.

Earnings reports are expected Monday from Levi Strauss, Greenbrier, and Dave & Buster's Entertainment.

Reports are expected later this week from JPMorgan Chase, Wells Fargo, Morgan Stanley, BlackRock, Delta Air Lines, Bank of New York Mellon, Constellation Brands, Fastenal, CarMax, Cal-Maine Foods, and WD-40.

Write to Joe Woelfel at joseph.woelfel@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 07, 2025 05:13 ET (09:13 GMT)

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