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The Dow Jones Industrial Average and other major indexes experienced heavy selling pressure on Monday as recession fears intensified and Canada responded to President Donald Trump’s tariffs. Several major stocks suffered significant losses, including Palantir Technologies, Nvidia, and Tesla.
Following a brief rebound on Friday, markets resumed their downward slide, with losses accelerating throughout the trading session. The Dow dropped more than 1,100 points at one stage before closing down 890 points, or 2.1%. Nvidia and Goldman Sachs were among the worst performers, each declining more than 5%.
The Nasdaq Composite fell sharply, losing 4%, or nearly 728 points. The index extended losses beyond its 200-day moving average and is now down more than 10% for the year.
DoorDash, which is set to join the S&P 500, managed to recover slightly from session lows but still ended the day with a decline. Meanwhile, Strategy, formerly known as MicroStrategy, plunged more than 16% following the announcement of a program that could raise up to $21 billion through perpetual strike preferred stock, a classification that provides a fixed dividend.
Market Performance by Sector
The benchmark S&P 500 dropped 2.7%, with most sectors finishing in negative territory. Energy and utilities were the only sectors to post gains, while technology and consumer discretionary stocks were hit hardest. Microchip Technology fell nearly 11%, and cruise operator Carnival lost more than 7%.
Small-cap stocks also suffered, with the Russell 2000 index hitting session lows and falling 2.4%. Growth stocks faced heavy selling, as the Innovator IBD 50 exchange-traded fund sank 3.4% and is now down nearly 11% for the year.
Trading volume was higher than Friday’s levels on both the New York Stock Exchange and the Nasdaq. Investors seeking safer assets pushed U.S. government bond yields lower, with the 10-year Treasury yield dropping nine basis points to 4.23%.
Tesla’s Stock Decline
Tesla’s stock losses deepened, dropping more than 15% during the session. The stock fell further below its 50-day and 200-day moving averages and has now erased its post-election gains. Since its December 17 high of 488.54, Tesla has lost more than half its value. Sales in Europe have declined significantly, with shares down nearly 45% in 2025.
Tesla’s recent stock performance is reflected in its IBD Composite Rating of 66 out of 99. However, the company’s CEO, Elon Musk, has remained active on social media despite investor concerns. Over the weekend, Musk engaged in a public dispute with Poland’s foreign minister, Radoslaw Sikorski, regarding Starlink access. On Monday, Musk also reported a large-scale cyberattack on the X social media platform, attributing it to a possible coordinated group or nation-state.
Oracle’s Performance Ahead of Earnings
Oracle’s stock came under pressure ahead of its earnings report, declining more than 4% and falling below key moving averages. Analysts expect earnings to increase 11% to $1.49 per share, with revenue climbing 8% to $14.4 billion. Despite a year-to-date decline of nearly 11%, the company maintains an IBD Composite Rating of 88 out of 99. Analysts forecast earnings growth of 10% this year, accelerating to 14% in 2026.
Tech Stocks Under Pressure
The group of leading technology stocks known as the “Magnificent Seven” also experienced widespread losses. Tesla was the worst performer, but other major tech names also struggled.
Apple dropped below its 200-day moving average, signaling additional weakness. Nvidia suffered a similar fate. Meta Platforms and Alphabet each fell nearly 5%, with Meta managing to stay above its 200-day line while Alphabet dipped below it. Amazon and Microsoft fared better than their peers but still ended the session with losses.
Robinhood Faces Regulatory Action
Robinhood Markets was another major underperformer after the Financial Industry Regulatory Authority (FINRA) imposed fines and restitution payments on the company. The trading platform was ordered to pay $3.75 million in restitution to customers and fined $26 million for multiple regulatory violations, including failures related to anti-money laundering compliance.
Robinhood’s stock declined sharply in afternoon trading, falling below its 50-day moving average and approaching its 200-day moving average.
