US Stocks Fall on Trump's Tariff Announcements
Concerns over US tariffs on Canada and China weighed down stock markets on Monday, although major averages pared heavier losses after President Trump postponed tariffs on Mexican imports for a month.
* Tech-heavy Nasdaq Composite: (-1.20%)
* S&P 500: (-0.7%)
* Dow Jones Industrial Average: (-0.3%)
Sector Performance
* Consumer discretionary stocks: Hit hard due to tariff impact fears, including automakers.
* Tech stocks: Lagged as shares of AI chip giant Nvidia, Apple, and Tesla fell over 2.5%.
Tariff Details
* Tariffs were initially set to take effect on Tuesday, with 25% duties on Canada and Mexico and 10% on China.
* Energy imports from Canada would face a lower 10% duty.
* Following a call with Mexico's president, Trump delayed Mexican tariffs by a month after she agreed to send soldiers to the border to stop fentanyl and illegal migrant flow.
* Similar deals were hoped for with Canada, but President Trudeau announced retaliation with 25% counter-tariffs on American goods.
Market Reaction
* US dollar index: Weakened after earlier surge to near two-year highs.
* West Texas Intermediate futures: Cut gains after jumping over 2%.
Other News
* Auto stocks: Dipped on fears of tariff impact, but pared losses following the Mexico tariff delay.
* Housing stocks: Underperformed the market as homebuilders expect tariffs to raise construction costs.
* Gold: Touched all-time highs as investors sought safe haven amid tariff uncertainty.
* Apple and Tesla: Led tech lower, feeling the brunt of tariff concerns due to exposure to the Chinese market.
* Wall Street economists: Debating the longevity and impact of Trump's tariff threats on Canada and Mexico.
* Market sell-off: Investors initially underestimated the risk of tariffs, leading to a sharp decline in stock prices.