Stan Choe, AP Business Writer
NEW YORK (AP) — US stocks fell Monday, wiping out even more profits since President Donald Trump’s election in November.
The S&P 500 fell 1.8% after Trump said it “doesn’t remain” due to negotiations that could lower tariffs set to begin Tuesday for imports from Canada and Mexico. Trump had previously delayed tariffs once to increase the time for consultation.
Trump’s announcement shattered hopes of choosing a painless path to world trade on Wall Street and followed the latest warning signals on the strengths of the US economy. Monday’s losses reduced the S&P 500 profit since Election Day from a peak of over 6% to just 1%. The rally was built largely on Trump’s policy hopes to strengthen the US economy and businesses.
Dow Jones’ industrial average fell 649 points (1.5%), while NASDAQ composites fell to 2.6%.
Monday’s slides separated several rocky weeks for Wall Street. After the S&P 500 set records last month following a parade of thicker profit reports expected from large American companies, the market began diving after reports that are weaker than expected on the US economy.
Such a latest report arrived in US manufacturing on Monday. Overall activity is still growing, but not as much as economists had predicted. Perhaps, more inexplicably, manufacturers are seeing shrinkage with new orders. Meanwhile, prices rose amid debate over who will pay Trump’s tariffs.
“We are pleased to announce that Timothy Fiore, chairman of the Supply Management Institute’s Manufacturing Business Research Committee.
Wall Street’s hopes were that Trump was using tariff threats as a tool for negotiations, and that he would ultimately experience potentially damaging policies for the global economy and trade. But Trump at Mexico and Canada’s tariffs hit a market where it was not certain what would happen next.
The recent slump in the market has become particularly difficult in Nvidia and several other previous high leap regions. They fell further on Monday, with Nvidia falling 8.8% and Elon Musk’s Tesla falling 2.8%.
Elsewhere on Wall Street, Kroger fell 3% after the grocery chain chairman and CEO Rodney McMullen resigned after an internal investigation into personal actions.
Wall Street’s Blue Monday cut shares in companies registered in the cryptocurrency economy, which rose strongly in the morning. They initially bounced back after Trump said over the weekend that his administration was moving forward in the crypto strategic reserve.
However, MicroStrategy, a company now known as a strategy and raising money to buy Bitcoin, fell to a 1.8% loss. Coinbase, a crypto trading platform, fell 4.6%.
The S&P 500 fell to 5,849.72 to 104.78 points. The Dow Jones industrial average fell from 649.67 to 43,191.24, while the Nasdaq composites fell from 497.09 to 18,350.19.
Throughout China’s Pacific, manufacturers reported an increase in orders in February. Importers are rushing to beat higher US tariffs, and a Chinese national media report said Beijing is considering ways to retaliate.
Trump is expected to rise to 20% from Tuesday as he had imposed a 10% tariff on imports from China. He also ended the “minimum” loophole that exempts imports below $800 from customs duties.
In Hong Kong, Chinese bubble tea chain mix Binchen shares have risen 43% since its debut of $444 million in the market. The company is the world’s largest food retail chain with over 45,000 outlets, and that jump came as the Hangsen index rose 0.3%.
The index rose further across Europe and Tokyo. European markets leapt after the report showed inflation ease in February. This should help investors expect the European Central Bank to cut another interest rate later this week.
Germany’s DAX jumped 2.6%, while France’s CAC40 jumped 1.1%. Non-US stocks have performed better than the S&P 500 this year, despite Trump’s commitment to an “America First” policy.
In the bond market, the 10-year Treasury yield fell from 4.24% to 4.16% just before the release of the production report. It has fallen sharply since January, when January was approaching 4.80%.
In many cases, a decline in Treasury yields can raise stock prices. But the reason for this reduction in yield, softer economic growth expectations, and softer economic growth expectations may mean that this isn’t the case this time, according to a Morgan Stanley strategist led by Michael Wilson.
Typically, the Federal Reserve cuts interest rates if the economy needs assistance. However, if inflation is high, or at least you have concerns about it, the Fed has less room to facilitate the rate.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: March 3, 2025, 4:08pm EST
