Wall Street Tumbles as Trump’s Tariffs Trigger Global Selloff/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets plummeted Monday as President Donald Trump’s new tariffs on Canada, Mexico, and China rattled investors. The Dow Jones Industrial Average dropped 435 points, while the S&P 500 fell 1.4% amid global economic uncertainty. Rising inflation concerns and the Federal Reserve’s uncertain rate policy added to the market turmoil.
Wall Street in Freefall Over Trump’s Tariffs: Quick Looks
- Dow Jones fell 435 points, with S&P 500 (-1.4%) and Nasdaq (-1.8%) also dropping.
- Global stock markets tumbled, with London (-1.5%), Paris (-1.7%), and Frankfurt (-1.8%) all down.
- Crude oil prices rose, fueling inflation fears.
- Trump warns more tariffs coming for the EU and UK.
- Treasury yields fluctuated, as investors rushed to safer assets.
- Tech stocks took a beating, with Nvidia (-5.3%) and General Motors (-5%) among the biggest losers.
- Market volatility expected to continue as trade war retaliation looms.
Wall Street Tumbles as Trump’s Tariffs Trigger Global Selloff
Trump’s Tariffs Rattle Wall Street: Deep Look
Stocks Slide as Trade War Intensifies
Financial markets worldwide plunged Monday as Trump’s tariffs on imports from Canada, Mexico, and China triggered fears of an escalating trade war.
- The Dow Jones dropped 435 points (-1%).
- The S&P 500 fell 1.4%, and the Nasdaq sank 1.8%.
- Asian and European markets also suffered losses, with Japan’s Nikkei 225 falling 2.7%.
Biggest Market Concerns
- Rising Inflation Risks:
- Higher tariffs mean higher prices on everyday goods (groceries, electronics, vehicles).
- Inflation had been cooling since 2022, but this could reverse the trend.
- Federal Reserve’s Dilemma:
- The Fed cut interest rates in September to boost the economy.
- If inflation spikes, the Fed may delay further rate cuts, hurting growth.
- Global Economic Uncertainty:
- Wall Street hoped Trump’s tariff threats were negotiation tactics.
- Now that the tariffs are real, investors fear global retaliation.
“The uncertainty at this stage is tremendous,” said Yung-Yu Ma, BMO Wealth Management.
Trump: “Some Pain” But Worth It
“We will make America great again, and it will all be worth the price that must be paid.”
Industries & Companies Hit Hardest
- Tech stocks plunged amid rising interest rate fears.
- Automakers fell due to reliance on Mexican supply chains.
- General Motors dropped 5%.
- Alcohol producers were hit, as Mexico and Canada retaliated with tariffs.
- Constellation Brands (Modelo, Corona) fell 5.6%.
Investors Rush to Safe-Haven Assets
With stocks plunging, investors moved into U.S. Treasury bonds for safety.
- The 10-year Treasury yield fell to 4.50%.
- The 2-year Treasury yield rose to 4.24%, signaling concern over Fed rate cuts.
Energy Prices Surge, Adding to Inflation Worries
- U.S. crude oil rose 1.3% to $73.45 per barrel.
- Brent crude (global benchmark) climbed 0.8% to $76.29 per barrel.
“Living in the Midwest, I might feel the trade war soonest,” said Brian Jacobsen, Annex Wealth Management, noting the U.S. relies on Canadian crude oil for gasoline production.
What’s Next? Markets Face More Uncertainty
- Retaliation from China, Canada, and Mexico could cause further stock market losses.
- The Federal Reserve’s next move remains uncertain—will they hold rates steady or cut them further?
- Will Trump push even more tariffs, and how will other countries respond?
Markets remain on edge, bracing for further volatility as the trade war heats up.
