S&P 500 Suffers Setback with Economic Uncertainty Looming

The S&P 500 fell further on Monday, exacerbating February’s downturn and turning negative for the year. This decline followed President Donald Trump’s confirmation of impending tariffs, fueling economic apprehensions.

The S&P 500 dropped by 2.1%, bringing its performance for the year to a nearly 1% loss. The Dow Jones Industrial Average tumbled 789 points, equating to a 1.8% fall. The Nasdaq Composite decreased by 3%, heavily impacted by Nvidia’s more than 9% drop.

All three indices had traded higher earlier in the session, with the Dow gaining nearly 200 points at one stage. However, a significant decline occurred in the afternoon when Trump reaffirmed that the 25% tariffs on imports from Mexico and Canada would begin on Tuesday. This announcement shattered investors’ hopes of a last-minute resolution to avoid full tariffs on these key U.S. allies.

“No room left for Mexico or for Canada,” declared Trump, standing alongside Commerce Secretary Howard Lutnick at the White House. “Reciprocal tariffs start on April 2 … but very importantly, tomorrow, tariffs, 25% on Canada and 25% on Mexico, … will start.”

In addition, Trump signed a directive to impose a further 10% tariff on China, as indicated by an administration official.