U.S. stock markets plummeted on Monday following President Trump’s decision to impose tariffs on three major trading partners of United States. Market participants’ confidence have shaken on concerns of its effect on the country’s already elevated inflation rate and recently released several soft key economic data clearly indicating that growing weakness of the U.S. economy. Geopolitical conflicts were other headwinds. All three major stock indexes ended in negative territory after a choppy session.
The Dow Jones Industrial Average (DJI) tumbled 1.5% or 649.67 points to close at 43,191.24. At intraday high, the blue-chip index was up nearly 193 points. Notably, 23 components of the 30-stock index ended in positive territory and 7 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 18,350.19, plunging 2.6% or 497.09 points due to pathetic performance by technology bigwigs. In intraday trading, the tech-laden index was up 145 points. The major loser of the index was NVIDIA Corp. NVDA. The stock price of the global leader in generative artificial intelligence chips space depreciated 8.7%. NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 plummeted 1.8% or 104.78 points to finish at 5,849.72. In intraday trading, Wall Street’s most observed benchmark was up 31.6 points. Seven out of 11 broad sectors of the broad-market index ended in negative territory, while four in positive territory.
The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK), the Materials Select Sector SPDR (XLB), the Communication Services (XLC), the Industrials Select Sector SPDR (XLI) and the Consumer Discretionary Select Sector SPDR (XLY) tanked 3.5%, 3%, 2%, 1%, 1.4% and 1.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 16.1% to 22.78. At intraday trading, the fear-gauge index touched 24.31, its highest since Dec. 20. A total of 18.5 billion shares were traded on Monday, higher than the last 20-session average of 15.7 billion. The S&P 500 posted 57 new 52-week highs and 27 new lows while the Nasdaq recorded 58 new 52-week highs and 453 new lows.
U.S. stock markets closed sharply lower in the second half of trading following President Donald Trump’s assertion that the United States will impose 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on imports from China on Mar.4.
