US Stocks Plunge 650 Points as Tariff Threats Shake Investor Confidence
U.S. stocks tumbled on Monday, erasing a large portion of gains since President Donald Trump’s election, after he announced that tariffs on Canadian and Mexican imports would begin Tuesday with “no room left” for negotiations. The S&P 500 slid 1.8%, while the Dow Jones Industrial Average shed 649 points and the Nasdaq composite dropped 2.6%. These declines follow weaker-than-expected economic data and growing concerns about inflation, which are turning investors increasingly cautious.
Market hopes had been pinned on the possibility of more measured trade policies, but Trump’s decision to proceed with steep tariffs unnerved Wall Street. Particularly hard-hit were technology stocks such as Nvidia, which fell 8.8%, and Tesla, down 2.8%. Meanwhile, bond yields declined, signifying worries about a slowdown in economic growth as business leaders and households grow more pessimistic.
Globally, markets had mixed reactions. European indexes rose after better-than-expected inflation reports, while Chinese manufacturers reported an uptick in orders as companies hurried to avoid U.S. tariffs. Analysts caution that if the United States forges ahead with stricter trade barriers, consumer costs could rise further, adding to the inflation woes that have dampened confidence in recent weeks.
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