Dow, S&P 500, Nasdaq losses accelerate on looming Trump tariffs

US stocks plummeted on Monday afternoon as investors assessed the economic impact of the Trump administration’s tariff plans after the President indicated there was “no room left” for negotiations with Canada and Mexico.

The S&P 500 (^GSPC) fell 1.8% while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.5%. The Dow Jones Industrial Average (^DJI) fell 1.7%, as the major US indexes came off a volatile week and a losing February.

Nvidia stock plummeted as much as 7% on Monday as reports surfaced that the tech giant’s AI chips are reaching China despite export controls.

March trading kicked off with investors encountering more questions than answers as tariff deadlines loom, the Federal Reserve’s next meeting fast approaches, and the US economy faces the test of disproving investors’ fears about growth. First quarter economic growth is expected to slide following a string of weaker-than-expected economic data.

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Tariffs on Canada and Mexico are set to come into effect on Tuesday, with no indication that a planned March 4 implementation date will be pushed back again. While 25% duties are planned, Commerce Secretary Howard Lutnick hinted that they could be lower by describing it as a “fluid situation.” New tariffs on China are also due on March 4, with Beijing said to be eyeing retaliatory measures on US agricultural products.

Elsewhere, European leaders’ weekend effort to rally around Ukraine prompted traders to boost bets on a bump in defense spending in the region, lifting related stocks.

The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%.

And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.

Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices of those tokens on Monday pared some of the sharp gains booked following the post on social media by the president, with bitcoin trading north of $87,000.

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Oil drops to lowest level of year as OPEC says it will add barrels to market

Oil tumbled 2% to its lowest level of 2025, after the Organization of Petroleum Exporting Countries (OPEC) said it will restart some of its curbed production, while a report about sanctions relief for Russia also weighed on energy prices.

The decision to begin adding 138,000 barrels a day in April surprised market participants. Many Wall Street analysts expected the cartel would delay the unwinding of production cuts which began in 2023.

In recent years the US and other countries gained market share while OPEC reduced production in an effort to keep a floor on prices.

On Monday afternoonWest Texas Intermediate crude (CL=F) declined more than 2% to $68 per barrel. Brent futures (BZ=F) also dropped to trade near $71.

Shale producers will likely scale back new well production if oil continues its downward path given higher drilling costs said Ed Hirs, senior fellow at the University of Houston.

“Producers are going to be squeezed,” Hirs told Yahoo Finance. “The vast majority will not drill wells at WTI less than $70 per barrel.”

Meanwhile, a Reuters report on Monday afternoon indicated the White House was planning to possibly give Russia sanctions relief as it seeks to normalize ties with President Vladimir Putin.
Why Trump 2.0 may not worry about a falling stock market just yet

Investors anxious for President Trump to return to his first-term playbook of tweeting about the stock market may have a long wait ahead of them.

While tariff talk has dampened equity prices in recent weeks, a growing number of Wall Street strategists point to Trump’s likely first order of business: lowering bond yields — even if it comes at the expense of a falling S&P 500 (GSPC).

“It’s reasonable to think that the index has to fall quite a bit more before Trump views it as a concerning signal,” UBS Financial Services’ Jason Draho wrote in a client note on Monday, noting the S&P 500 is sitting at a level below what it was on Inauguration Day but still higher than it was on Election Day.

“There’s also a strong case that the relevant Trump put right now is for Treasuries,” he wrote, arguing that “high…

Dow, S&P 500, Nasdaq losses accelerate on looming Trump tariffs

Oil drops to lowest level of year as OPEC says it will add barrels to market

Why Trump 2.0 may not worry about a falling stock market just yet

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