US stocks sold off Monday morning after President Donald Trump announced tariffs on Canadian, Chinese, and Mexican goods. The S&P 500 fell 1.5%, the Dow Jones Industrial Average dropped 1.1%, and the Nasdaq declined 1.9%. However, after Trump confirmed that Mexico tariffs would be delayed by a month, markets recovered, with the Dow closing down just 0.3%, the S&P 0.8%, and the Nasdaq 1.2%.
The four industries hardest hit by the tariff were alcoholic beverage purveyors, automakers, multinational technology firms with heavy China exposure, and cryptocurrency-focused companies. Shares of Constellation Brands, Ford, General Motors, and Tesla plummeted, while crypto-heavy stocks, such as Coinbase and RobinHood, also declined.
Goldman Sachs estimates that the tariffs will have a 5% impact on the S&P’s fair-value price, with a total hit to corporate earnings of 2-3%. The global crypto market has fallen by nearly $300 billion in value since Friday, with bitcoin down 5% to around $99,000.
The market’s reaction to Trump’s announcements is expected to be closely watched. Morgan Stanley chief equity strategist Michael Wilson said that the “equity market had been leaning towards a gradual approach” on China and Mexico tariffs, but now faces a more uncertain outlook.
Source: https://www.forbes.com/sites/dereksaul/2025/02/03/apple-nvidia-and-tesla-among-hardest-hit-as-tariffs-drag-down-stock-market