US stocks fell on Monday as investors awaited President Donald Trump’s deadline for imposing new tariffs on Canada, Mexico, and China. The S&P 500 declined by 1%, while the Dow Jones Industrial Average dropped 402 points or 0.9%. The Nasdaq composite also fell 1.5%.
The market has been volatile in recent weeks, with stocks initially rising after a series of strong profit reports from major US companies. However, subsequent weak economic data and pessimistic views on inflation led to a sharp decline.
Manufacturers reported less-than-expected growth in February, with new orders contracting. Prices rose as the administration’s tariff policy took effect, according to Timothy Fiore, chair of the Institute for Supply Management’s manufacturing business survey committee.
Trump’s tariffs are set to take effect on Tuesday, but he has historically pulled back at the last minute. Investors hope that the threat of tariffs is being used as a negotiating tool and that Trump will implement policies with less damage to the global economy.
The market slump has hit high-flying areas like Nvidia and Tesla particularly hard, with both stocks falling by 6.8% and 1.9%, respectively. Other companies affected by the cryptocurrency economy also fell, including MicroStrategy and Coinbase.
Tuesday’s earnings reports from major retailers will provide insight into US consumer spending habits, which are crucial to the global economy. With data showing that US households may not wait for tariffs to change their behavior, these reports carry extra significance.
Across the Pacific, Chinese manufacturers reported an uptick in orders as importers rushed to beat higher US tariffs. Trump’s tariffs on China are set to rise to 20% beginning Tuesday, and he has also ended the “de minimis” loophole that exempted imports worth less than $800 from tariffs.
In contrast, European markets rose after a report showed an easing of inflation in February. The European Central Bank is expected to deliver another interest rate cut later this week.
Source: https://apnews.com/article/stocks-markets-china-rates-inflation-72339ddf1ecb65d7815f4bb5272197d7