The US stock market, with a capitalization of about 50 trillion USD, has just experienced a shock after US President Donald Trump gave advice "not to watch the stock market". This statement raised concerns about the possibility that the US economy could fall into recession, especially in the context of escalating trade tensions with China, the EU and neighboring countries.

All three major US stock indexes opened the first session of the week on March 10 (night of March 10, Vietnam time) with sharp declines. The Dow Jones Industrial Average lost 350 points, while the broad S&P 500 index fell 1.8%, and the technology index fell 3%.

The drop came after Donald Trump refused to rule out a recession in an interview with Fox News’ “Sunday Morning Futures” on Sunday, warning of an economic “transition” and advising “not to watch the stock market.”

Sevens Report founder Tom Essaye said Trump's comments were "sentimentally damaging" and "did nothing to ease investors' concerns about the ongoing policy turmoil."

Mr Trump's advice to "not watch the stock market" is a stark contrast to his positive attitude and special interest in the stock market during his first term.

During his 2017-2021 presidency, Trump closely monitored and took pride in the growth of stock indexes as a measure of his administration’s economic success. Tweets and statements praising the bull market became a familiar part of his interactions with the public on economic issues.

However, the current situation seems to be different. Instead of being optimistic, Mr. Trump has given somewhat indifferent advice. This, according to analysts, has negatively affected investor sentiment, which is sensitive to macroeconomic instability.

Trumpstock2025Mar10 Inc.jpg
Mr. Donald Trump has made many shocking statements. Photo: Inc

One of the main factors driving the stock market’s negative reaction is growing concerns about the possibility of a full-blown trade war. Sweeping and frequently changing tariff policies could cause significant disruption to global supply chains, hurt corporate profits and threaten to dampen consumer demand.

Now, fears of a recession in the US are looming. Goldman Sachs economists have even raised their forecast for the likelihood of a recession in the next 12 months to 20%, from 15% previously, citing trade policies as the main reason.

Uncertainty about the timing and scope of new tariff measures, as well as who will be targeted (China, the European Union and neighboring countries…), is creating a risky investment environment.

According to Essaye, “the reason stocks are down is because of the spike in uncertainty and the fear that uncertainty will lead to a cascade of negative impacts.”

Notably, not only are major stock indexes under pressure, but many large technology stocks, which have been the pillars of the market in recent years, are also seeing sharp declines.

The Nasdaq has officially entered correction territory, down 12% from its February peak. Tech giants Nvidia and Tesla have been hit the hardest. Nvidia shares have fallen 21% since February 19, while Tesla has lost 33%.

Still, there are some bullish voices in the market. Morgan Stanley strategists maintain their price target of 6,500 for the S&P 500 by the end of 2025, expecting a rebound from lower interest rates and more business-friendly policies after what could be a rough start to the year. They say Trump’s policies may have an initial negative impact but will eventually benefit the market.

The international financial market was shaken after US President Donald Trump announced that he would still impose a 25% tax on Canada and Mexico and raise the tax rate on Chinese goods to 20% from March 4.