A sell-off across US markets has continued as investor sentiment soured amid growing fears that the world’s largest economy is facing a recession. The mood spilled over into European markets, which closed lower.
It follows a week of turbulence for global stock markets, in which investors have tried to digest the impact of US tariffs on Canada, Mexico and China. Over the week, US president Donald Trump made policy, then reversed it, including temporarily halting tariffs on Canada and Mexico on Thursday.
On Wall Street, the S&P 500 had plunged 2.3 per cent by the time European markets closed, and Dow Jones was down 1.2 per cent. Experts said there could be a number of reasons for the sell-off. David Morrison, a senior market analyst for Trade Nation, said there was uncertainty surrounding tariffs, adding: “The president appears to be taking a scatter-gun approach in terms of targets, while teasing the markets with last-minute reprieves, delays or softening in scope. “All-in-all, it’s proving difficult to price all this in.”
DUBLIN
Insulation giant Kingspan, which has a big footprint in the US, close the session down 1.8 per cent. Bank of Ireland followed the wider market trend down, falling 1.5 per cent each. Profits at an Irish engineering tools group Mincon fell 76 per cent in 2024 during what was described as a “tough year” by group chief executive Joe Purcell but the company’s shares closed up 2.63 per cent
Ryanair bucked the trend to close marginally up at €20.53. Hotel group Dalata was also positive, closing the session up 3.7 per cent at €3.64. This follows last week’s announcement that it had put itself on the market. The company, which owns the Clayton and Maldron hotels - announced a strategic review of the business, saying it is exploring all options, including its potential sale.
EUROPE
The Stoxx Europe 600 Index was down 1.3 per cent at the close, the lowest since February 10th. Technology was the worst-performing sector, with the Stoxx Tech Index close to giving up this year’s gains. Banks — which have led the rally in 2025 — also fell. US equity indexes declined and the Magnificent Seven dropped as Trump said the US economy faces “a period of transition.”
So-called high momentum stocks were a particular feature of the day’s trading. A UBS basket that includes UCB, Siemens Energy and Rolls-Royce, declined 3.3 per cent.
Sentiment took a further hit after Germany’s Green party said it won’t support a draft debt-financed package that would unleash billions of euros in defense and infrastructure spending. Danish weight-loss-drug maker Novo Nordisk was the biggest drag on the index, down 8.1 per cent, after a clinical trial of its CagriSema treatment fell short of some investors’ expectations.
LONDON
The British benchmark index fell to a near five-week low on Monday, tracking a global equity selloff as worries about economic growth and uncertainties around US tariffs continued to keep investors on edge. The blue-chip FTSE 100 fell 0.9 per cent, its fifth straight session of declines, and closed at its lowest since February 4th. “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “The prospect of a recession in the US is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous.”
Defence stocks, which have benefited from higher defence spending prospects, continued to give up their gains to fall about 4.5 per cent and lead sector declines. Clarkson slumped 20.3 per cent, after the shipping services company flagged the impact of geopolitical uncertainty on its near-term outlook.
Assura jumped 14.3 per cent after the British healthcare real estate investment trust said it would consider a £1.61 billion offer from US private equity group KKR and Stonepeak Partners. Shares of Deliveroo rose 0.8 per cent after the meal delivery company said it would exit its Hong Kong operations and sell some assets to Delivery Hero’s foodpanda.
NEW YORK
The tech-heavy Nasdaq led sharp losses among major US stock indexes on Monday, plunging 4 per cent to a near six-month low, on fears that Trump’s tariff policies would spark an economic slowdown.
The benchmark S&P 500 has fallen over 8 per cent from its February high.
Heavyweight growth stocks such as Nvidia fell 5.2 per cent, while Microsoft and Amazon declined around 3.2 per cent each. The broader technology sector fell more than 4.5 per cent, while the small-cap Russell 2000 index dipped 2.1 per cent.
JPMorgan Chase and Goldman Sachs also retreated, dragging down the broader banks index. Tesla was down 13 per cent, lowest since October 2024, after UBS cut its forecast for the automaker’s first-quarter deliveries. Data on inflation, job openings and consumer confidence are due later in the week. - Additional reporting by Reuters
