Stocks slump as US economic data weakens and tariff threats increase, leading to negative market impact.

From Nasdaq: 2025-03-03 18:53:45

Stock indexes closed lower on Monday, with the S&P 500 down -1.76%, Dow Jones down -1.48%, and Nasdaq 100 down -2.20%. Tech stocks like Nvidia, Amazon, and Tesla led the decline. President Trump’s tariff threats on Canada, Mexico, and China added to market woes. Energy stocks fell as crude oil prices dropped.

Concerns about stagflation in the US economy drove stock market losses on Monday. The weak manufacturing activity and high ISM prices-paid index fueled fears. Tech giants like Nvidia, Amazon, and Tesla saw significant declines. President Trump’s tariff announcements on Canada, Mexico, and China further pressured the market, leading to energy stock losses as well.

US stocks reacted negatively to President Trump’s tariff threats towards Canada, Mexico, and China. Energy stocks suffered as WTI crude oil prices hit a 2-3/4 month low. However, European stocks reached record highs, and China’s manufacturing activity showed strength. The US ISM manufacturing index fell, but the prices paid sub-index surged.

Bitcoin prices rose after President Trump hinted at a crypto strategic reserve. Market attention is on Trump’s upcoming address to Congress, ISM services index data, and nonfarm payrolls report. Fed Chair Powell will also speak at the US Monetary Policy Forum. Overseas, Euro Stoxx 50 rallied, while the Shanghai Composite and Nikkei Stock 225 closed mixed.

June 10-year T-notes rallied on Monday, with yields falling to a 2-3/4 month low. Weak US economic data and safe-haven demand drove T-note gains. Concerns about inflation and negative impact from new tariffs weighed on T-notes. European bond yields rose, with Eurozone CPI and manufacturing PMI figures showing strength.

Stock movers included tech giants like Nvidia, Amazon, and Tesla, which saw significant declines. Chip stocks, energy producers, and companies like Humana and AES Corp also closed lower. Defensive food producers like Hershey and Campbell’s gained. Capri Holdings and Allegro MicroSystems saw gains, while sandisk rose after a positive analyst recommendation.

Earnings reports on 3/4 include AutoZone, Best Buy, Crowdstrike, Ross Stores, and Target. Overall market sentiment was negative on Monday, driven by concerns about tariffs, weak economic data, and tech stock losses. Investors are also watching upcoming economic reports and events for market direction.



Read more at Nasdaq: Stocks Slump on Weak US Economic News and Tariff Jitters