US stocks plummeted on Monday afternoon, as selling accelerated after President Trump indicated there was “no room left” for tariff negotiations with Canada and Mexico, with levies against both countries set to go into effect tomorrow. The S&P 500 (^GSPC) fell more than 2% while the tech-heavy Nasdaq Composite (^IXIC) dropped 3%. The Dow Jones Industrial Average (^DJI) fell 1.8%, as the major US indexes came off a volatile week and a losing February.
Tech led the sell-off with shares of Nvidia (NVDA) tanking more than 9%. All of the “Magnificent 7” stocks declined. March trading kicked off with investors encountering more questions than answers amid looming tariffs as US policy makers face the test of disproving investors’ fears about growth. First quarter economic growth is expected to slide following a string of weaker-than-expected economic data.
Tariffs against Canada and Mexico are set to come into effect on Tuesday after President Trump said levies against both countries are “all set, they go into effect tomorrow.” Elsewhere, European leaders’ weekend effort to rally around Ukraine prompted traders to boost bets on a bump in defense spending in the region, lifting related stocks. The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%. And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.
Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices of those tokens on Monday pared some of the sharp gains booked following the post on social media by the president, with bitcoin trading north of $87,000.
Bitcoin pares gains, hovers near $86,000
Cryptocurrencies pared gains on Monday following a sharp rally in reaction to President Trump’s announcement on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices for the tokens shot up before giving up some of their sharp gains booked following the President’s post on social media. By Monday at around 3:15 p.m. ET, bitcoin was trading south of $86, 000, down from $95,000 immediately following the announcement.
Losses accelerate after Trump says “no room left” for negotiations with Mexico, Canada
The markets sank to session lows with Tech and Energy stocks leading the losses after President Trump said there was “no room left” for negotiations with Canada and Mexico and tariffs against imports from those countries would go forward on Tuesday. Nvidia (NVDA), also weighed by reports of the tech giant’s AI chips reaching China despite export controls, dropped 9%. The S&P 500 (^GSPC) fell more than 2% while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 3%. The Dow Jones Industrial Average (^DJI) fell 1.9%.
Oil drops to lowest level of year as OPEC says it will add barrels to market
Oil tumbled 2% to its lowest level of 2025, after the Organization of Petroleum Exporting Countries (OPEC) said it will restart some of its curbed production, while a report about sanctions relief for Russia also weighed on energy prices. The decision to begin adding 138,000 barrels a day in April surprised market participants. Many Wall Street analysts expected the cartel would delay the unwinding of production cuts which began in 2023. In recent years the US and other countries gained market share while OPEC reduced production in an effort to keep a floor on prices. On Monday afternoonWest Texas Intermediate crude (CL=F) declined more than 2% to $68 per barrel. Brent futures (BZ=F) also dropped to trade near $71. Shale producers will likely scale back new well production if oil continues its downward path given higher drilling costs said Ed Hirs, senior fellow at the University of Houston. “Producers are going to be squeezed,” Hirs told Finance. “The vast majority will not drill wells at WTI less than $70 per barrel.” Meanwhile
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