Wall Street had a rough day 💔 on Monday as investors grappled with fresh tariff tensions.
U.S. stocks ended lower with the Dow Jones Industrial Average dipping 122.75 points, or 0.28%, closing at 44,421.91. The S&P 500 wasn't feeling much better, dropping 45.96 points (0.76%) to 5,994.57, while the tech-heavy Nasdaq slid 235.49 points (1.20%) to 19,391.96.
Out of the S&P 500's 11 sectors, six ended in the red 🚫. Technology and consumer discretionary stocks took the biggest hits, down 1.80% and 1.35% respectively. On the flip side, consumer staples and utilities managed to shine ✨, rising 0.68% and 0.46%.
The market jitters stemmed from the Trump administration's planned tariff rollout. Originally set for Tuesday, these tariffs include hefty 25% duties on goods from Canada and Mexico, and 10% on Chinese imports. Notably, Canadian energy imports were set for a reduced rate of 10%.
But there was a plot twist! 📞 After a Monday morning call with Mexico's President Claudia Sheinbaum, Trump agreed to hit the pause button on tariffs for Mexican imports for a month. This came after Sheinbaum committed to deploying troops at the border to curb fentanyl trafficking and illegal immigration.
Later that day, Trump announced that tariffs on Canada, which were unveiled on Saturday, \"will be paused for a 30-day period\" to see if a final economic deal can be hashed out.
These developments brought a bit of relief, helping major indexes pare some losses during the morning session.
\"This is a very fluid and evolving situation,\" said Victoria Greene of G Squared Private Wealth. \"For now, our baseline thesis is that the bulk of these are transitory and likely to be watered down with concessions. We are on top of developments and watching how this may affect earnings, the U.S. dollar, and inflation.\"
While worries linger over potential price hikes and economic strain, there’s a silver lining 🌤️. The Wells Fargo Investment Institute noted that the administration's \"targeted and gradual approach\" aims to soften any blow to U.S. growth.
Paul Christopher, head of global investment strategy at the institute, highlighted that services remain the primary economic driver. \"It's probably going to take several quarters to have a noticeable impact,\" he said. \"You could eventually see some higher prices, but not right away.\"
For now, all eyes 👀 are on the negotiations and how these tariff tales will unfold. Stay tuned!
Reference(s):
cgtn.com
