04:44 PM EDT, 03/10/2025 (MT Newswires) -- US benchmark equity indexes and Treasury yields tumbled Monday after President Donald Trump recently didn't rule out the possibility of a recession this year.

The Nasdaq Composite slumped 4% to 17,468.3, while the S&P 500 slid 2.7% to 5,614.6. The Dow Jones Industrial Average decreased 2.1% to 41,911.7. Among sectors, technology tumbled 4.3%, the steepest decline, followed by consumer discretionary. Only utilities and energy closed higher.

Trump said in an interview with FOX News over the weekend that there would be a "period of transition," and didn't rule out the possibility of an economic downturn in 2025.

Trump's message "connotes a willingness to take the economy close to recession, which improves the administration's bargaining power with trade counterparties, the (Federal Reserve), and the bond market," Macquarie said in a Monday note.

Separately, Goldman Sachs increased its 12-month recession probability to 20% from 15%. The brokerage expects escalating trade tensions to weigh on US economic output and push up inflation.

US consumers' inflation expectations rose slightly at the short-term horizon in February, but held steady at the medium- and long-term horizons, a survey by the New York Fed showed Monday.

"Households expressed more pessimism about their year-ahead financial situations in February, while unemployment, delinquency, and credit access expectations deteriorated notably," the Fed branch said.

US Treasury yields tanked Monday, with the two-year rate sliding 10.6 basis points to 3.896% and the 10-year rate plunging 9.3 basis points to 4.225%.

The so-called Magnificent-7 group of stocks, which comprises Tesla (TSLA), Meta Platforms ( META ) , Microsoft ( MSFT ) , Google ( GOOG ) parent Alphabet (GOOG, GOOGL), Apple ( AAPL ) , Amazon ( AMZN ) and Nvidia ( NVDA ) , all closed lower. Tesla shares plunged 15%, the worst performer on the S&P 500, following a price target reduction at UBS.

European Union antitrust regulators will likely impose light fines on iPhone maker Apple ( AAPL ) and Facebook parent Meta for alleged breaches of the Digital Markets Act, Reuters reported, citing unnamed sources.

The Trump administration's tariffs on three key trading partners are likely to hit Best Buy ( BBY ) the hardest among hardline retailers, while potentially leading to deteriorating demand in the home-improvement space, Wedbush Securities said.

Rocket (RKT) agreed to acquire real-estate brokerage Redfin (RDFN) for an equity value of $1.75 billion in a deal that's expected to drive users to Rocket's home-lending business. Redfin's shares soared nearly 68%, while Rocket's fell 15%.

About 99% of S&P 500 companies have reported their latest quarterly results in the ongoing cycle, with earnings up 13.5% from a year earlier and revenue growing 5.3%, Oppenheimer Asset Management said. Before the start of the reporting season, analysts polled by Bloomberg projected earnings growth for the quarter at 7.3% year over year, according to the report.

West Texas Intermediate crude oil decreased 1.6% to $65.96 a barrel Monday.

Gold fell 0.8% to $2,891.5 per troy ounce, while silver slid 1.1% to $32.44 per ounce.