All three major U.S. stock indexes dropped sharply in Monday morning trading, with investors worried about the uncertainty of tariffs imposed by President Donald Trump on key trading partners and then his refusal to rule out the possibility of a U.S. recession in the coming months.

The key Dow Jones average of 30 blue chip stocks dropped more than 1%, with the broader S&P 500 index falling 2 percentage points and the tech-heavy Nasdaq barometer off more than 3 percentage points.

The S&P 500 finished Friday with a 3.1% weekly drop, its biggest such decline in six months, and the index is down 7.4% from its all-time high set on Feb. 19.

Trump imposed new 25% tariffs on Mexican and Canadian exports to the U.S. last week and then days later paused the duties until April 2, leaving it uncertain what might happen then.

Commerce Secretary Howard Lutnick told NBC News over the weekend, "There's going to be no recession in America,” but Trump hedged.

"I hate to predict things like that,” the U.S. leader told Fox News. “There is a period of transition, because what we're doing is very big. We're bringing wealth back to America. That's a big thing." He then added, "It takes a little time. It takes a little time."

On Monday, the sell-off of big-tech stocks continued. The stock of electric carmaker Tesla, whose chief executive is billionaire Elon Musk, a key Trump adviser, slid more than 8%.

Other key technology stocks such as Apple, Microsoft, Alphabet, Amazon, Nvidia and Meta Platforms all dropped by more than 2%.

The U.S. economy, the world’s largest, has already given some signals of weakening, mostly through surveys showing increased pessimism from consumers, whose purchases account for 70% of the country’s economic output. A widely followed collection of real-time indicators compiled by the Federal Reserve Bank of Atlanta suggests the U.S. economy may already be shrinking.

Analyst David Mericle at the Goldman Sachs investment company cut his 2025 year-over-year estimate for U.S. economic growth from 2.2% to 1.7%, largely because Trump’s tariffs look like they will be bigger than he was previously forecasting. He said he sees a one-in-five chance of a recession over the next year.

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