U.S. stock markets plunged due to Trump's tariffs and weak economic data

From Nasdaq: 2025-03-04 03:13:00

U.S. stock markets plunged on Monday after President Trump imposed tariffs on major trading partners, raising concerns about inflation and weak economic data. The Dow fell 1.5%, the Nasdaq dropped 2.6%, and the S&P 500 declined 1.8%. Energy, tech, and materials sectors were hit hard, while the VIX fear index spiked.

President Trump’s tariffs on Canada, Mexico, and China sparked fears of higher inflation and economic weakness. Recent data showed declines in personal spending, retail sales, and construction, with manufacturing PMI and construction spending missing expectations.

President Trump has halted military aid to Ukraine following a dispute with President Zelenskiy, raising concerns about geopolitical conflicts. Both leaders clashed publicly, casting doubt on future agreements between the two countries.

In economic news, manufacturing PMI for February missed expectations at 50.3, with new orders contracting and employment weakening. Construction spending fell 0.2% in January, below expectations. These figures indicate a slowdown in key sectors of the U.S. economy.



Read more at Nasdaq: Stock Market News for Mar 4, 2025