The U.S. stocks market has been grappling with unprecedented volatility following President Donald Trump’s announcement of sweeping tariffs. The policy, which includes a baseline rate of 10% on imports from all countries, has sparked fears of a global trade war, sending shockwaves through financial markets and raising concerns about the broader economic impact.
Monday’s trading session was particularly tumultuous, with the Dow Jones Industrial Average falling for the third consecutive day. The index dropped 349.26 points, or 0.91%, to close at 37,965.60. During the session, the Dow experienced its largest intraday point swing ever recorded, plunging over 1,700 points before recovering 2,595 points from its low to high. The S&P 500 also closed lower, shedding 0.23% to end at 5,062.25, while the Nasdaq Composite managed a modest gain of 0.10%, closing at 15,603.26.
U.S Stocks Volumes Hit Historic Levels
Trading volume reached historic levels, with approximately 29 billion shares changing hands—surpassing Friday’s volume of 26.77 billion shares and the 10-day average of 16.94 billion shares. This surge in activity underscores the heightened uncertainty and investor anxiety surrounding the tariff announcement.
The tariff rollout has had a profound impact on various sectors:
– Technology: Megacap tech U.S stocks like Nvidia and Palantir saw increased investor interest, helping the Nasdaq Composite inch higher despite broader market declines.
– Retail: Companies reliant on imported goods, such as Apple, faced significant losses. Apple shares closed 3.7% lower, with the company losing nearly $640 billion in market capitalization over the past three trading days.
The tariffs, set to take effect on April 9, 2025, have intensified fears of a slowdown in economic growth and rising inflation. The S&P 500 has lost more than 10% over the last three sessions, marking its worst stretch since the outbreak of COVID-19 in 2020. Analysts warn that the tariffs could exacerbate inflationary pressures by increasing the cost of imported goods, further straining consumers and businesses alike.
Global Trade Tensions
China has retaliated with its own set of counter-tariffs, and other countries are preparing similar measures, escalating the risk of a prolonged trade war. On Monday, President Trump threatened even higher tariffs against China, stating via Truth Social that if Beijing does not withdraw its 34% increase in trade abuses by April 8, the U.S. will impose additional tariffs of 50% effective April 9. This defiant stance has further strained relations and fueled fears of global economic instability.
Our Analysts at the Trading Room commented, “As the U.S Stocks market navigates these challenges, investors will closely monitor developments and policy clarifications. The coming weeks will be critical in determining the long-term implications of these tariffs on the global economy and financial markets.”
Read: Asian Stocks Plummet as China Hits Back on Trump Tarrifs
