Stocks drop after President Trump announces tariffs on Canadian, Mexican, and Chinese goods

From Nasdaq: 2025-02-03 09:20:00

U.S. stocks closed lower on Friday as President Trump announced 25% tariffs on Canadian and Mexican goods and 10% tariffs on Chinese goods, sparking fears of another trade war. The Dow Jones Industrial Average dropped 0.8%, the S&P 500 lost 0.5%, and the Nasdaq slid 0.3%.

Concerns of a trade war led to a negative performance in energy, consumer staples, and materials stocks. The fear-gauge VIX rose 3.72%, with decliners outnumbering advancers on both the NYSE and Nasdaq. Investors braced for retaliatory tariffs from Mexico, Canada, and China.

Earnings reports from big tech names showed mixed results. Apple reported disappointing iPhone sales but beat earnings and revenue expectations. Visa also beat on earnings and revenues, yet shares ended lower. Personal income rose 0.4%, while consumer spending jumped 0.7% in December.

It was a volatile week for the markets, beginning with fears of an AI bubble bursting but rebounding later. The Dow ended up 0.3%, while the S&P 500 lost 1% and the Nasdaq fell 1.6%. January saw Trump’s return for a second term, boosting markets with gains for all major indexes.

Zacks Investment Research offers a $1 trial for access to all picks, including services like Surprise Trader and Technology Innovators, which closed 228 positions with double- and triple-digit gains in 2023. Thousands have taken advantage of this offer to access Zacks’ buy and sell recommendations.



Read more at Nasdaq: Stock Market News for Feb 3, 2025