U.S. stocks ended lower on Monday as investors reacted to the Trump administration's planned tariff rollout. 📊
The Dow Jones Industrial Average fell 122.75 points, or 0.28%, to 44,421.91. The S&P 500 dropped 45.96 points, or 0.76%, to 5,994.57. Meanwhile, the Nasdaq Composite Index slid 235.49 points, or 1.20%, to 19,391.96.
Of the 11 primary S&P 500 sectors, six closed in the red, with technology and consumer discretionary leading the declines at 1.80% and 1.35% respectively. On the flip side, consumer staples and utilities saw gains of 0.68% and 0.46% respectively. 📉📈
The new tariffs, set to take effect on Tuesday, include:
25% duties on goods from Canada and Mexico 🇨🇦🇲🇽
10% on Chinese imports 🇨🇳
Reduced 10% rate on Canadian energy imports ⚡
In a move to ease tensions, Trump postponed tariffs on Mexican imports for a month after a call with Mexico's President Claudia Sheinbaum, who committed to deploying troops at the border to curb fentanyl trafficking and illegal immigration. Later, Trump also paused tariffs on Canada for a 30-day period to explore a final economic deal. 🤝
Following these developments, U.S. major indexes pared some of their losses in the morning session.
\"This is a very fluid and evolving situation,\" said Victoria Greene of G Squared Private Wealth. \"For now, our baseline thesis is that the bulk of these are transitory and likely to be watered down with concessions. We are on top of developments and watching how this may affect earnings, the U.S. dollar and inflation.\"
Despite lingering concerns over potential price hikes and economic strain, the Wells Fargo Investment Institute noted that the administration's \"targeted and gradual approach\" aims to mitigate disruptions to U.S. growth. Paul Christopher, head of global investment strategy at the institute, emphasized that services remain the primary economic driver, while the industrial sector continues to struggle with weak pricing power amid a manufacturing downturn. 🏭💼
\"It's probably going to take several quarters to have a noticeable impact,\" Christopher added. \"You could eventually see some higher prices, but not right away.\"
