Wall Street's sell off intensified on Monday as investors pulled out of stocks amid increased worries that President Donald Trump's tariff policies could push the U.S. economy into a recession. The Dow Jones Industrial Average plunged nearly 900 points in afternoon trading, while the S&P 500 Index and Nasdaq Composite lost about 3% and 4%, respectively.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): -2.69% or -155.63 points to 5,614.56

Dow Jones Industrial Average (DIA  ): -2.08% or -890.01 points to 41,911.71

Nasdaq Composite Index (QQQ  ): -4.00% or -747.90 points to 17,468.32

Over the weekend, Trump said there will be a "period of transition," when asked in an interview with Fox News Channel's "Sunday Morning Futures," about whether he was expecting a recession in 2025.

"We are in the throes of a manufactured correction ... based in response to the new administration's tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy. Now, with people talking about potential recession, I think it's just adding to investor concern," said Sam Stovall, chief investment strategist at CFRA Research, quoted by CNBC. "RIght now we're going through a typical pullback and probably will experience a mild correction before all is completed, which actually would be good for the resetting of the dials of this ongoing bull market."

Market averages broadly fell last week as Trump's tariffs against major trading partners took effect. The S&P 500 declined over 3% for its worst week since September, while the Dow lost 2.4% and the Nasdaq fell by 3.5%. For the month, major averages are each down at least 5%, with the tech-heavy Nasdaq underperforming its peers as it plunged close to correction territory, or 10% below its most recent all-time high.

Morgan Stanley Chief Global Economist Seth Carpenter wrote Monday that Trump's tariff policies could potentially impact the timeline of interest rate cuts from the Federal Reserve as increased inflationary pressures remains a risk.

"Tariffs are inflationary, albeit temporarily, so our expected but by the Fed in May or June could be at risk, but the next couple of months will see falling inflation," Carpenter wrote. "The timing remains uncertain, but all of these policies would skew negative for growth does now seem to be more accepted by markets. Recent market moves are consistent with this view, but some of the market reaction to soft data was likely overdone ..."

Market Bellweathers:

Tesla (TSLA  ) shares are down more than 50% from their 52-week high, as the electric vehicle maker continues to be impacted by CEO Elon Musk joining the Trump administration. The company has lost more than $800 billion in market cap since its peak at roughly $480 on Dec. 17. Nvidia (NVDA  ) has also lost nearly a third of its value in just two months as tariff fears impact technology stocks, particularly chipmakers that rely on parts and manufacturing overseas.