S&P 500 Sees Its Worst Day this Year on Deeper Tariff Fears – US Market Wrap
Bonds rose and stocks saw their largest loss of the year as a result of more muted economic news and Trump’s promise to impose tariffs on major trading partners.
Trump’s announcement that Mexico and Canada would not be able to negotiate a reprieve from tariffs that were scheduled to go into effect on Tuesday caused the S&P 500 to drop nearly 2%. Both the peso and the loonie slipped. Trump signed an order to impose 20% tariffs on China, according to the White House.
Along with weak manufacturing data, a decline in big tech had a significant impact on stocks. Oil plummeted as OPEC+ moved forward with plans to restart production that had been halted.
Stocks erased their Friday surge, bringing the S&P 500 nearly 5% below a record high set on February 19.
Monday’s data was the latest in a string of disappointing economic reports over the last two weeks, revealing weaker housing, rising unemployment claims, and a drop in personal spending. Crypto, a key risk proxy in post-election markets, fell, with Bitcoin, Ether, and others falling below level Sunday as Trump stepped up calls for a digital asset stockpile.
The S&P 500 index fell 1.8%. The Nasdaq 100 declined 2.2%. The Dow Jones Industrial Average fell 1.5 percent. A gauge of the Magnificent Seven megacaps fell 3.1%. The Russell 2000 fell 2.8%. A UBS basket of US stocks negatively impacted by tariffs fell 2.9%.
