Global economy trembles

Trump tariffs: “Blood red” Monday on Wall Street

If the USA slips into recession, the global economy suffers.(Bild: AP/Copyright 2025 The Associated Press. All rights reserved.)

Following the recent stabilization, the US stock markets came under significant pressure on Monday and closed deep red. In view of US President Donald Trump's erratic tariff policy, fears of negative effects on the economy are increasingly spreading in the US. There are now even fears that the United States, the world's largest economy, could slide into recession.

This has particularly affected technology stocks, which are sensitive to the economy. The technology-heavy Nasdaq Composite index plummeted by a remarkable four percent to 17,468.32 points, recording its biggest daily loss since September 2022, writes the US financial information service CNBC.

The broad market S&P 500 fell by a whopping 2.70 percent to 5,614.56 points, following its weakest performance since September in the previous week with a weekly drop of 3.1 percent. The Dow Jones Industrial benchmark index closed the week down 2.08% at 41,911.71 points.

Trump threatens Canada with agricultural tariffs
Trump recently suspended tariffs on goods from neighboring Mexico and Canada for the time being, provided the goods fall under the USMCA free trade agreement. However, the Republican threatened Canada with further tariffs - particularly in the agricultural sector.

The brokers on the New York Stock Exchange had an extremely hectic Monday.(Bild: AP)

Tesla shares on the slide
Among the biggest losers on the Nasdaq, Tesla shares slumped by more than 15 percent, continuing their downward slide. A loss in value of around 45 percent was recorded for 2025. According to the China Association of Automobile Manufacturers, Tesla is also suffering from the political commitment of CEO Elon Musk, particularly to US President Trump. Not only in China, but also in Europe, the company's sales recently fell significantly against the industry trend.

The remaining stocks from the group of seven tech giants in the US all recorded significant share price losses. Microsoft, Amazon, Apple , Nvidia, Meta and Alphabet lost between 2.4 and 5.1 percent.

Biontech shares, which are listed in New York, fell by 3.2 percent. The former Mainz-based corona high-flyer slipped significantly into the red last year on its way to developing cancer drugs. According to Biontech, the reason for this is the high level of investment, particularly in expensive clinical trials. Among other things, the company is now planning to cut jobs.

In terms of financial stocks, Robinhood investors had to cope with a drop of almost 20 percent. The company had settled a dispute with the US securities regulator Finra in return for a payment of 26 million US dollars. In addition, the weak stock market environment and losses in the price of Bitcoin weighed on investor sentiment.

Cryptocurrencies also lost ground
The cryptocurrency platform Coinbase recorded losses of 17.6 per cent following the recent price stabilization. Contrary to the hopes of some investors, the shares, which have been suffering from Bitcoin's downward trend for some time, were not included in the much-noticed S&P 500 index.

Among others, the food delivery service Doordash will rise. Its shares quickly lost initial gains in the gloomy environment and fell slightly by 0.1 percent at the end of the session.