Stock market plummets as US economic anxiety grows

Tesla shares plunge 15 per cent as Musk loses almost $19bn

- RHIAN LUBIN, MIKE BEDIGAN

The US stock market rebounded slightly to avoid a historically bad day, but the Dow Jones Industrial Average lost almost 900 points at closing yesterday as the White House played down anxieties over a possible recession.

The Dow closed at a loss of 890 points and was earlier heading toward its worst day since 2022 following president Donald Trump’s trade tariff chaos with Canada, Mexico and other nations. At one point, the Dow was down 1,000 points, which would have put it in the top 20 worst days in market history.

The Nasdaq suffered the most, tanking 4.2 per cent, on course for its biggest single-day percentage drop since September 2022, Reuters reported. It added that the bellwether S&P 500 closed below its 200-day moving average, a closely watched support level, for the first time since November 2023.

On the day of Mr Trump’s re-election last November, the stock market enjoyed a boost. But now, all three major indexes are below their levels on 5 November.