- Many investors thought President Donald Trump would prioritize tax cuts and deregulation over imposing tariffs. That trade has unwound, with market participants pulling out of hot tech names that have led an AI-driven bull market and heading toward more defensive assets.
Markets sold off amid a President Trump–size correction on Monday as investors worried whether tariff uncertainty could steer the economy into recession. The S&P 500’s postelection rally has been more than erased, with the index declining 2.7% to start the week and closing just above the $5,600 mark for the first time since mid-September. Big Tech names that have led the stock market’s AI boom over the past two years were hit hard, and the Nasdaq Composite fell 4% to see its worst day since September 2022.
