US stocks fell solidly Monday with selling accelerating by mid-morning trading as investors processed growing concerns about the health of the US economy and readied for a busy week of economic data, headlined by a report on inflation amid concerns over its resurgence under President Trump's unpredictable trade policy.
The Dow Jones Industrial Average ( ^DJI ) fell around 1%, while the benchmark S&P 500 ( ^GSPC ) dropped roughly 2% after the index posted its worst week since September . The Nasdaq ( ^IXIC ) also plummeted more than 3% with "Magnificent Seven" stocks leading the sell-off.
All three major indexes looked set to build on losses of more than 2% last week.
March's market struggles continue to be fueled by worries over the health of the US economy. Those concerns have become wrapped up in Trump's ongoing trade salvo, as tariff negotiations between the US, Mexico , and Canada dominate the headlines. In a Sunday interview on Fox News, Trump addressed concerns about a potential recession, describing the economy as undergoing “a period of transition.”
Meanwhile, Mark Carney is set to become Canada's new prime minister after his election as the Liberal Party's leader. Carney's initial signal is that he intends to take a hard line on tariff negotiations .
The political uncertainty is expected to persist into this week, with key economic data adding to the mix of potential market-moving factors. Updates on the inflationary picture will be in focus, with the February Consumer Price Index scheduled for release on Wednesday and the Producer Price Index set to follow on Thursday.
The Fed's survey of consumer inflation expectations is set for release on Monday, followed by the University of Michigan’s consumer sentiment report on Friday.
Read more: The latest on Trump's tariff plans
This week sees a quieter set of corporate earnings releases. Database giant Oracle ( ORCL ) reports on Monday while software maker Adobe ( ADBE ) is set to post results on Wednesday.
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