The US stock market experienced a significant decline on Monday, with major indexes losing over 1% as investors reacted to new tariff uncertainty and fears of AI disruption. The Dow Jones Industrial Average dropped by over 800 points, while the S&P 500 and Nasdaq composite also saw substantial losses.
US stocks dropped on Monday as traders digested tariff news and as worries over AI ramped up. The Business Insider reported that President Donald Trump’s announcement over the weekend to hike global tariffs to 15% added to trade policy uncertainty. Additionally, chatter about an AI bubble picked up, extending the decline in software stocks.
The Dow lost more than 800 points as selling ramped up around midday.
The S&P 500 and Nasdaq composite also saw substantial losses, with the S&P 500 down 1.18% and the Nasdaq composite down 1.32%.
The iShares Expanded Tech-Software Sector ETF, which tumbled into a bear market earlier this year, was down another 5%.
Investors also turned a more critical eye toward the software sector, with notable moves including AppLovin down 9%, Asana down 9%, and DocuSign down 9%.
Chatter about an AI-fueled meltdown picked up on Monday after the firm Citrini Research published a report outlining a hypothetical 2028 scenario in which the AI boom could trigger a recession and a stock market crash in the next couple of years.
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