Stock markets tumble as investors react to tariff uncertainty

U.S. markets plunged Monday as investor concerns over tariff policy and economic uncertainty fueled a three-week sell-off.

The Dow Jones Industrial Average dropped 890.01 points, or 2.08 per cent, closing at 41,911.71. The S&P 500 fell 2.7 per cent to 5,614.56, while the Nasdaq Composite suffered the steepest decline, losing 4 per cent to close at 17,468.32—its worst session since September 2022.

The sell-off deepened throughout the day, with the S&P 500 now down 8.7 per cent from its February record high. The Nasdaq has fallen nearly 14 per cent from its recent peak.

The losses come as President Donald Trump downplayed concerns of a recession in a Sunday interview, referring to the economic downturn as “a period of transition.” However, traders and analysts point to ongoing uncertainty over tariffs as a key driver of market instability.

“We are in the throes of a manufactured correction,” said Sam Stovall, chief investment strategist at CFRA Research. “It’s really based in response to the new administration’s tariff programs, or at least threats of tariffs, and what kind of an impact that will have on the economy.”

Technology stocks led the decline, with Tesla tumbling 15 per cent—its worst day since 2020—erasing US$20 billion from Elon Musk’s personal fortune, which has dropped by over $139 billion since December. Alphabet and Meta each lost more than 4 per cent, while Nvidia fell 5 per cent.

In Canada, the Toronto Stock Exchange fared comparatively better, closing down 1.53 per cent. Suncor shares bucked the trend, finishing the day higher at $51.54.