Wall Street stocks finished mostly lower on Monday following a volatile session amid rising recession worries due to US President Donald Trump's trade wars.

Both the Dow and S&P 500 ended lower despite flirting with positive territory, while the Nasdaq mustered a modest gain.

The Dow Jones Industrial Average finished down 0.9 percent at 37,965.60.

The broad-based S&P 500 dipped 0.2 percent to 5,062.25, while the tech-rich Nasdaq Composite Index edged up 0.1 percent to 15,603.26.

Markets again opened sharply lower following a gloomy round in Asian and European bourses on the weakening global growth outlook after Trump's sweeping tariff announcement last week.

Shortly after the opening, major indices briefly surged into positive territory following a report that White House economic advisor Kevin Hassett said Trump was considering a 90-day tariff pause.

White House officials quickly denied the story, saying that in an interview on Fox News this official was misquoted.

"Even though Kevin Hassett was misquoted, market participants could see what would happen if there is a modicum of good news," said Art Hogan of B. Riley Wealth Management, who is among market watchers who consider stocks oversold after the recent period.

Economists see the tariffs as boosting the risk of recession in light of a possible resurgence in inflation and a slowdown in capital investment from businesses unsettled by shifting US policies.

Futures markets have increased bets that the Federal Reserve will cut interest rates, with traders overwhelmingly projecting such a move at the central bank's June meeting.

This week's calendar includes updates on US consumer prices, as well as earnings from JPMorgan Chase and other large US banks. (AFP)