The S&P skidded 2.7 percent, amid investor fears that tit-for-tat tariffs could raise prices, slow the economy and sow uncertainty among businesses.

U.S. stocks plunged on Monday, suffering widespread losses amid an escalating trade war a day after President Donald Trump declined to rule out the possibility of a recession. The Dow Jones Industrial Average closed down 890 points,

The sell-off comes amid economic uncertainty and after President Donald Trump declined to rule out the possibility of a recession.

Uncertainly, stress from federal policy moves called "unprecedented" as market dives far from its peak in December.

U.S. stocks plunged on Monday as relentless tariff wrangling and mounting anxieties from a possible federal government shutdown gave rise to fears that the U.S. economy could be careening into recession.

White House may have forgotten what a real recession looks like, according to one economist, but the financial markets are on full alert for a slowdown.