Kohl's (KSS) stock plummeted 9.62% in pre-market trading on Monday, as rising recession fears and a broader market selloff hit the retail sector particularly hard. The sharp decline comes amid concerns over U.S. President Donald Trump's recently announced sweeping tariffs, which have intensified worries about an economic downturn.

The retail giant's stock drop is part of a larger trend affecting major U.S. retailers. Futures tied to the S&P 500 fell more than 20% from their all-time highs, signaling a potential bear market. This negative sentiment has spread across the retail landscape, with other notable companies such as Walmart, Target, and Amazon also experiencing significant pre-market declines.

Kohl's, along with other department store chains, appears to be particularly vulnerable to these economic headwinds. Macy's, a direct competitor, was also down 7.7% in pre-market trading. The S&P 500 Consumer Discretionary Distribution & Retail Index had already fallen over 16% year-to-date before this latest drop, highlighting the ongoing challenges faced by the sector. As recession fears mount, investors seem to be reevaluating their positions in retail stocks, leading to the sharp sell-off observed in Kohl's and its peers.