The S&P 500 slipped on Monday, deepening its February losses and pushing it into negative territory for the year, as President Donald Trump’s announcement of impending tariffs heightened economic anxiety.
The index fell 2.1%, resulting in a year-to-date decline of nearly 1%.
Meanwhile, the Dow Jones Industrial Average saw a substantial drop of 789 points, or 1.8%, and the Nasdaq Composite fell 3%, significantly impacted by a more than 9% drop in Nvidia’s shares.
Initially, all three major indexes had started the trading day on a positive note, with the Dow up nearly 200 points.
However, a sell-off occurred in the afternoon as Trump reiterated that 25% tariffs on imports from Canada and Mexico would take effect on Tuesday, dashing investors’ hopes for a last-minute agreement that could prevent the tariffs on these key trading partners.
During his remarks, Trump emphasized, “No room left for Mexico or for Canada,” and confirmed that tariffs would begin the next day, stating, “Reciprocal tariffs start on April 2… but very importantly, tomorrow, tariffs, 25% on Canada and 25% on Mexico, will start.”
This announcement contributed to the market’s swift decline, reflecting growing concerns about trade tensions and their impact on the economy.
Source (CNBC)
