New York CNN —
As Wall Street heads into a new quarter, a flurry of President Donald Trump’s tariffs are set to go into effect. That has traders on edge and has helped put US stocks on track for their worst quarter in years.
Wall Street has been rocked with volatility this year as Trump’s tariff proposals have kept investors in a cloud of uncertainty. The benchmark S&P 500 index is down more than 5% this year, on track for its first losing quarter since September 2023 and its worst quarter since September 2022.
Stocks around the globe were lower Monday ahead of Trump’s so-called “Liberation Day” this Wednesday when reciprocal tariffs in addition to others are set to go into effect. Economists anticipate the sweeping tariffs could spur inflation and drag on economic growth.
US stocks opened lower Monday. The Dow was down by 300 points, or 0.75%. The S&P 500 opened lower by 1.3% and the Nasdaq Composite slid 2.3%.
The full extent of Trump’s tariffs is yet to be seen, and the lack of clarity has been troubling for Wall Street. Analysts at Goldman Sachs on Sunday lowered their year-end target for the S&P 500 to 5,900 from 6,200. That comes after analysts at the bank earlier this month lowered their target to 6,200 from 6,500.
Analysts at Barclays last week lowered their year-end target for the S&P 500 to 5,900 from 6,600. Wall Street has been revising down its forecasts amid heightened concerns about the impact of Trump’s tariffs on the US economy.
The economy faces a growing risk of a recession as tariffs could hinder growth, increase unemployment and contribute to inflation, according to Goldman Sachs. The bank on Sunday said it sees a 35% chance of a recession in the next 12 months, up from 20% previously.
Global markets have similarly been shaken by Trump’s tariffs. In Japan, the benchmark Nikkei 225 tumbled 4% on Monday and closed in correction territory, down 10% for the first quarter. Taiwan’s benchmark index also tumbled more than 4% and closed down 10% for this quarter.
In Europe, the STOXX 600 index opened lower and slid 1.5%. Germany’s DAX index also fell 1.5%.
“Extreme fear” was the sentiment driving markets on Monday, according to CNN’s Fear and Greed Index.
“Its all about the tariff uncertainty and how much tariffs and counter measures will be announced,” said Mohit Kumar, chief economist and strategist for Europe at Jefferies, in a note Monday.
This is a developing story and will be updated.
