US markets tumble amid global selloff, briefly rebound on tariff pause rumours
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U.S. stocks opened significantly lower on Monday, mirroring a broader global market selloff driven by fears that sweeping tariffs announced by President Donald Trump could trigger an economic slowdown.
Concerns over an escalating trade war caused widespread volatility, with Wall Street initially plunging before briefly recovering on reports - later proven false - that the White House might delay tariff implementation for 90 days.
As of around 1505 GMT, the Dow Jones Industrial Average had slipped 0.9% to 37,977.96. The S&P 500 hovered near the flatline at 5,072.51, while the tech-heavy Nasdaq Composite managed to rise 0.6% to 15,674.45.
The brief market uptick followed a misinterpreted report suggesting that White House economic advisor Kevin Hassett had said President Trump was considering a temporary tariff freeze. The White House quickly denied this, sharing Hassett’s actual comments from a Fox News interview, clarifying that the report was inaccurate.
“We’ve seen a sharp selloff in a very short time,” said Art Hogan of B. Riley Wealth Management. “Even a hint of positive news - real or not - shows how eager the markets are for relief.”
Investors and economists alike are concerned that the newly introduced tariffs, which exceed market expectations in scope and impact, could raise inflation and discourage business investment - both key risks that could push the U.S. economy toward recession.
JPMorgan Chase CEO Jamie Dimon weighed in, saying the tariffs would likely hinder economic growth and drive inflation higher. “Whether they cause a full-blown recession remains uncertain, but a slowdown seems inevitable,” he wrote in a letter to investors.
This week, investors will closely watch U.S. consumer price data and earnings reports from major banks, including JPMorgan, for further insights.