U.S. stock index futures took a nosedive on Monday, signaling a grim start to the week as the S&P 500 teetered on the edge of officially confirming a bear market.
The steep declines, driven by investor panic over President Donald Trump’s aggressive tariff proposals, erased nearly $5 trillion in market value over just two trading sessions—the worst two-day drop since March 2020.
S&P 500 futures plummeted more than 20% from their all-time highs, a threshold that, if confirmed at Monday’s close, would mark the index’s entry into a bear market since February.
The tech-heavy Nasdaq has already crossed into bear territory, while the Dow Jones Industrial Average shed over 10% from its recent record high.
By 4:42 a.m. ET (0942 GMT), S&P 500 E-minis were down 159 points (3.11%), Nasdaq 100 E-minis dropped 598.5 points (3.41%), and Dow E-minis fell 1,178 points (3.06%).
The sell-off comes amid mounting economic concerns tied to Trump’s sweeping tariff plans, which he doubled down on late Sunday.
Addressing reporters, the president insisted that investors must “endure the consequences” of his trade strategy, vowing no negotiations with China until the U.S. trade deficit is resolved.
The remarks sent shockwaves through Wall Street, with the CBOE Volatility Index—often dubbed the “fear gauge”—surging 7.57 points to 52.88, reflecting heightened market anxiety.
Meanwhile, investors fled to the safety of government bonds, driving 10-year U.S. Treasury yields down to 3.953%.
The flight to bonds has fueled speculation of a fifth Federal Reserve interest-rate cut this year, with traders now pricing in a 54% chance of a rate reduction as early as May to counter fears of a tariff-induced recession.