US stocks tumble again on rising recession worries

Wall Street stocks opened sharply lower Monday, joining a global selloff on worries that a trade war induced by US President Donald Trump's tariffs will spark a global economic slowdown.

About 20 minutes into trading, the Dow Jones Industrial Average was down 3.6 percent at 36,947.62.

The broad-based S&P 500 tumbled 3.5 percent to 4,897.96, while the tech-rich Nasdaq Composite Index shed 3.7 percent to 15,017.24.

Equity markets have been in free fall since Trump's announcement Wednesday unveiling sweeping tariffs on trading partners that were far more impactful than markets expected.

The losses pushed Nasdaq into a bear market last week with the other two indices not far behind. A bear market is defined as a 20 percent drop from a recent peak.

"In the short term we are very very very oversold and we're overdue to bounce," said Adam Sarhan of 50 Park Investments. "In the event that we can't bounce, that tells us we're probably going lower."

Economists point to a rising risk of recession in light of a possible resurgence in inflation and a slowdown in capital investment from businesses unsettled by shifting US policies.

"Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," JPMorgan Chase Chief Executive Jamie Dimon said in a letter to investors, concluding that "the recent tariffs will likely increase inflation."

This week's calendar includes updates on US consumer prices, as well as earnings from JPMorgan and other large US banks.