Stocks plummeted sharply on Monday, pushing the S&P 500 into correction territory as investors eyed President Donald Trump’s upcoming tariff plans. The S&P 500 fell more than 1.6%, while the Nasdaq Composite dropped 2.5%. The Dow Jones Industrial Average shed 355 points, or 0.9%. Tech giants Nvidia and Meta Platforms saw significant losses, down 4.3% and 2.6%, respectively. Tesla also lost 5.3%.
The S&P 500 is now over 10% below its February record, marking its lowest level since September. The tech-heavy Nasdaq reached its lowest point since September as well, down 16% from its all-time high in December.
The steep drop in stocks comes as a series of tariffs announced by the Trump administration are set to go into effect on Wednesday, dubbed “Liberation Day” by the president. These include a 25% tariff on cars that are not made in the U.S. Trump is also expected to announce reciprocal tariffs aimed at countries imposing levies on U.S. exports.
The uncertainty surrounding these tariffs has weighed heavily on the markets, causing declines on Friday to close out the final full trading week of March. Over the weekend, Trump further fueled concerns, telling NBC News that he “couldn’t care less” if foreign automakers raise their prices because of the new tariffs. Additionally, Trump stated that the levies will target all countries, not just those with trade imbalances with the U.S.
This uncertainty over U.S. trade policy has raised concerns about the country’s economic growth and increased fears of stagflation. Barclays equity strategist Emmanuel Cau pointed out that while the tariff risks are largely priced in, the uncertainty surrounding the final scope, level, and timing of tariffs will continue to weigh on global growth.
Monday marked the end of a volatile month and quarter for Wall Street. The S&P 500 is down more than 7% for March, on track for its biggest monthly decline since September 2022. The Nasdaq has fallen 10% this month, while the Dow has lost 5.8%. For the quarter, the S&P 500 is down 6.3%, breaking a five-quarter winning streak. The Nasdaq has dropped 12.3%, marking its largest quarterly pullback since Q2 2022. The Dow has lost 2.9% in the first quarter of 2025.
