A wave of selling swept through Wall Street after President Donald Trump announced that tariffs previously specified for Canada and Mexico would be implemented immediately. The S&P 500 index took a hit, falling by 1.8% on Monday, as Trump’s declaration crushed hopes that negotiations might prevent the tariffs, which were set to be enacted on Canadian and Mexican imports by Tuesday.
The market had held out for a less drastic course regarding global trade, but those expectations were dashed. This development came on the heels of fresh concerns about the robustness of the U.S. economy. The Dow Jones Industrial Average experienced a decline of 1.5%, while the Nasdaq composite tumbled down 2.6%. Additionally, Treasury yields decreased following a manufacturing report that came in below expectations.
On the specific figures for Monday, the S&P 500 dropped 104.78 points, closing at 5,849.72, marking a 1.8% descent. The Dow Jones Industrial Average decreased by 649.67 points, ending at 43,191.24 with a 1.5% drop. The Nasdaq composite also fell significantly, down 497.09 points to 18,350.19, representing a 2.6% slump. Small-cap stocks, reflected in the Russell 2000 index, weren’t spared either, as it fell by 60.83 points, or 2.8%, reaching 2,102.23.
Looking at the performance for the year so far, the S&P 500 shows a decrease of 31.91 points, or a 0.5% decline overall. Conversely, the Dow has managed a slight increase, being up by 647.02 points, or 1.5%. The Nasdaq composite has notably lagged behind, dropping by 960.60 points, which translates to a 5% reduction. Meanwhile, the Russell 2000 index of smaller enterprises has suffered, with a 5.7% drop, down 127.92 points in total.
