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Indexes down: S&P 500 4.52%, Nasdaq 100 4.96%, Dow 4.24%

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Howmet Aerospace ( HWM ) falls on report it may halt orders if hit

by

tariffs

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Investors expect more US rate cuts this year

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Crypto-related stocks track sharp drop in bitcoin prices

(Updates after markets open)

By Pranav Kashyap and Purvi Agarwal

April 7 (Reuters) - Wall Street's main indexes fell

sharply on Monday and the S&P 500 was on track to confirm a bear

market as investors sought refuge in government bonds on

economic worries over the fallout of U.S. President Donald

Trump's sweeping tariff plans.

The S&P 500 fell 20% from its record closing high logged in

February. If the index ends down 20% from its all-time closing

highs, it would confirm the index has been in a bear market

since February.

The blue-chip Dow is down nearly 17% from its December

all-time high.

The Dow Jones Industrial Average fell 1,626.09

points, or 4.24%, to 36,688.77, the S&P 500 lost 229.94

points, or 4.52%, to 4,844.51, and the Nasdaq Composite

lost 773.28 points, or 4.96%, to 14,814.51.

All three indexes were at more than one-year lows.

Technology stocks were down 5.4%, with megacaps

continuing to bear the brunt. Apple ( AAPL ) fell 6.3%, Nvidia ( NVDA )

lost 7.1%, while Microsoft ( MSFT ) shed 3.6%.

The small-cap Russell 2000 fell 4.6%, while the CBOE

Volatility index was at 53.89 points, its highest since

August 2024.

However, White House economic adviser Kevin Hassett played

down economic concerns over Trump's tariffs, saying the

president has talked to world leaders all weekend and will

listen to proposals for "great deals".

"The only reason the market is not down a little bit more is

that it seems like there is potential for off ramp ... the

administration likes to make deals and likes to negotiate from

position of strength," said Ross Mayfield, investment strategist

at Baird.

Trump announced hefty tariffs against U.S. trading partners

last week, sparking retaliation from China and fueling concerns

that the trade war will impede economic growth and stoke

inflationary pressures.

In the two sessions after the tariff decision, the S&P 500

has tumbled 10.5%, erasing nearly $5 trillion in market value,

marking its most significant two-day loss since March 2020.

Trump told reporters late on Sunday that investors must

endure the consequences and that he would refrain from

negotiating with China until the U.S. trade deficit is

addressed.

The sharp declines in the past two sessions pushed the

tech-heavy Nasdaq into bear market territory, while the Dow

Jones index slumped more than 10% from its record-closing high.

The fear of a tariff-led recession caused markets to bring

into play the chances of an interest-rate cut in May, with

traders seeing a near 60% possibility, according to data

compiled by LSEG.

Howmet Aerospace ( HWM ) dropped 3.3% after a report said

the aircraft parts supplier may halt some shipments if they are

impacted by Trump's tariffs.

Cryptocurrency-linked stocks also took a hit tracking a

sharp drop in bitcoin prices. Strategy was down 12.3%

and Mara Holdings ( MARA ) fell 7.8%.

Several speeches by Federal Reserve officials and a series

of economic indicators, including consumer price data, are

expected this week, with markets keenly observing any signals of

recessionary fears.

Declining issues outnumbered advancers for a 23.21-to-1

ratio on the NYSE and a 11.26-to-1 ratio on the Nasdaq.

The S&P 500 posted no new 52-week high and 157 new lows,

while the Nasdaq Composite recorded four new highs and 809 new

lows.