S&P, Dow Jones Crash 3% Even as Trump Tells Investors 'Don't Be Weak, Stupid'

Dow Jones, S&P 500 Crash: US stock markets continued with declining spree on Monday as investor sentiment remained jittery. Trump's tariff stance and surprise moves have added uncertainty to an already blurry outlook. The Dow Jones Industrial Average plummeted over 1,100 points or 3%. The S&P 500 index followed cues and entered the bear territory.

The tech-heavy index, Nasdaq also fell over a percent on Monday. Interestingly, markets tumbled even as Trump urged investors not to give in to panic selling.

"The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!" Trump said in a social media post.

While the US President has already dropped the tariff bomb on its trade partners, his high-level supporters are now calling the tariff play a huge mistake that can have severe economic consequences. For instance, Billionaire hedge fund manager Bill Ackman recently urged Trump to put a pause on tariffs, warning that the global economy might be nearing a "self-induced economic nuclear winter."

"I am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs," Achman said in a social media post.

Bloodbath in Global Markets

However, the bloodbath is not limited to just US markets as investor sentiment remained subdued globally. In the Asia region, Japan's Nikkei declined by nearly 8% or 2,600 points, marking one of the worst single-day declines. The Hang Seng index followed the cue and witnessed an even more severe drop of over 13% or 2,000 points on Monday.

In the domestic region, benchmark indices, Sensex and Nifty, experienced a similar trajectory and dropped by nearly 5% during the morning trade session before easing some pain. The overall investor mood continues to remain muted as Trump's surprise moves, beyond flat tariffs, might bring additional uncertainty to the macro picture.