MK sport US, on March 10, 2025. Technology shares led the biggest selloff in US stocks since 2022, as investors ditched longtime market leaders on rising worries the economy is headed for a recession. Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-03-11/210a5a22-c1bb-49b3-8b51-a146813af20d.jpeg" />

People walk in front of the Nasdaq MarketSite in New York, US, on March 10, 2025. Technology shares led the biggest selloff in US stocks since 2022, as investors ditched longtime market leaders on rising worries the economy is headed for a recession. Photo: VCG

US stocks plunged on Monday, as the US administration's unrelenting tariff threats on its major trade partners caused rising jittery and fears that the US economy may be headed for a distressful recession, according to US media reports.

On Monday, the S&P 500 shed 2.7 percent, touching its lowest level since September at one point and closing at 5,614.56.

The tech-heavy Nasdaq Composite recorded the sharpest decline, falling 4 percent for its worst session since September 2022 and closing at 17,468.32. The Dow Jones Industrial Average dropped 890.01 points, or 2.08 percent, ending at 41,911.71, US media outlet CNBC reported.

The widespread sell-off was mostly driven by anxiety about the impact of US government's tariffs policy, CNN reported on Monday. 

In an interview that aired on Sunday, US President Donald Trump said the US economy would see "a period of transition" but he refused to rule out a possible recession, according to the CNN report.

Recently, multiple US financial institutions have raised alarms about a growing risk of an economic downturn in the US.

Goldman Sachs recently hiked its odds of an economic recession in the US from 15 percent to 20 percent. "The threat of a recession is real," ABC News reported on Tuesday, citing Olu Sonola, the head of US regional economics at Fitch Ratings. 

"It's a threat you cannot ignore," Sonola said.

Morgan Stanley lowered its 2025 economic growth forecast for the US on Friday, citing a greater impact from the tariffs and a persistently tight labor market, which could lead to higher inflation in the US. 

The Wall Street brokerage lowered its 2025 US economic growth forecast from 1.9 percent to 1.5 percent, citing weak economic data and growing tariff concerns. The investment bank also revised its 2026 US growth forecast down to 1.2 percent from 1.3 percent, according to Reuters.