The US markets ended in red on Monday with Nasdaq settling lower by over one percent. Markets moved sharply lower in early trading amid concerns about a global trade war after Trump officially imposed a 25 percent tariff on imports from Canada and Mexico and a 10 percent tariff on imports from China. A statement from the White House said Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country. Trump also threatened possible tariffs against the United Kingdom and the European Union, marking a significant escalation. Markets fell despite President Donald Trump confirmed he has reached an agreement with Mexican President Claudia Sheinbaum to pause recently implemented tariffs on Mexico for one month.
The tariff pause comes after Sheinbaum said Mexico will immediately reinforce its northern border with 10,000 members of its National Guard to prevent drug trafficking from Mexico to the United States, particularly fentanyl. On the sectoral front, computer hardware stocks regained ground after an early sell-off but still ended the day significantly lower, dragging the NYSE Arca Computer Hardware Index down by 2.6 percent. Considerable weakness also remained visible among housing stocks, as reflected by the 2.4 percent slump by the Philadelphia Housing Sector Index. Airline, semiconductor and banking stocks also saw notable weakness, while gold stocks moved higher along with the price of the precious metal.
Dow Jones Industrial Average fell 122.75 points or 0.28 percent to 44,421.91, Nasdaq dropped 235.49 points or 1.2 percent to 19,391.96 and S&P 500 was down by 45.96 points or 0.76 percent to 5,994.57.
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