Merchants work on the New York Inventory Alternate ground on March 3, 2025.
Spencer Platt | Getty Photos
The S&P 500 retreated on Monday, extending February’s rout and turning crimson for the 12 months after President Donald Trump‘s affirmation of forthcoming tariffs.
The broad index fell 1.76% to finish at 5,849.72, marking its worst day since December and bringing its year-to-date efficiency to a lack of about 0.5%. The Dow Jones Industrial Average dropped 649.67 factors, or 1.48%, to complete at 43,191.24. The Nasdaq Composite slid 2.64% to shut at 18,350.19, weighed down by Nvidia‘s decline of greater than 8%.
Shares took a notable leg down in afternoon buying and selling following President Trump’s reiteration that 25% levies on imports from Mexico and Canada would go into impact on Tuesday, dashing traders’ hopes of a last-minute deal to avert the total tariffs on the 2 U.S. allies. All three indexes traded in optimistic territory earlier within the day, with the Dow rising practically 200 factors at session highs.
“No room left for Mexico or for Canada,” Trump stated alongside Commerce Secretary Howard Lutnick from the White Home. “Reciprocal tariffs begin on April 2 … however very importantly, tomorrow, tariffs, 25% on Canada and 25% on Mexico … will begin.”
Trump additionally signed an motion to impose a further 10% responsibility on China, in accordance with an administration official.
Dow intraday
A risk-off transfer ensued, hitting all the pieces from expertise to small caps. Past Nvidia, onetime well-liked synthetic intelligence performs comparable to Broadcom and Super Micro Computer additionally plunged. Elsewhere, the small cap-focused Russell 2000 dropped shut to three%.
Shares set to take a direct hit from the tariffs or retaliation by the focused international locations additionally fell. GM and Ford hit their lows of the session after Trump’s feedback. Alternate-traded funds from iShares monitoring Mexico and Canada every fell greater than 1%.
“Whether or not the inventory market can survive this alteration stays to be seen,” Chris Rupkey, chief economist at FWDBONDS, stated in a notice. “A technique or one other, tariffs will likely be a shock for the economic system.”
Monday’s sell-off to begin March comes after the three main indexes notched losses for February, largely over concern of the impact of tariffs and early indicators of a weakening economic system. The Dow and S&P 500 every slipped greater than 1% in February, whereas the tech-heavy Nasdaq Composite recorded its worst month since April 2024 with a pullback of about 4%.
Delicate financial knowledge for the manufacturing and building sectors launched Monday provided the most recent causes for fear concerning the state of the U.S. economic system. These releases kick off a big week for financial knowledge that will likely be capped by the February jobs report slated for Friday.
