US
stocks plummeted on Monday afternoon, with selling accelerating in the
last hour of trading after President Trump indicated there was "no room
left" for tariff negotiations with Canada and Mexico, indicating that new levies against both countries will go into effect tomorrow.
The S&P 500 (^GSPC) fell 1.7%, posting its worst day of 2025, while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.6%. The Dow Jones Industrial Average (^DJI) fell nearly 650 points, or almost 1.5%, as the major US indexes came off a volatile week and a losing February.
Tech led the sell-off, with shares of Nvidia (NVDA) tanking more than 8%. All of the "Magnificent 7" stocks declined.
The
week will bring a crucial jobs report and a batch of retail earnings
that could feed or ease concerns about an economic downturn and consumer
resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%.
And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.
Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve.
Prices of those tokens on Monday pared some of the sharp gains booked
following the post on social media by the president, with bitcoin
trading around $86,000.
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Ines Ferré
Dow, S&P 500, Nasdaq tank as Trump confirms tariffs against Canada, Mexico
Market
losses accelerated but closed off the session lows on Monday after
President Trump said there was "no room left" for negotiations with
Canada and Mexico and tariffs against imports from those countries were
set to go into effect on Tuesday.
The White
House also indicated levies against China will be 20% as of Tuesday, an
increase from the 10% tariffs implemented last month.
The S&P 500 (^GSPC) fell 1.7% to register its worst day of the year, while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.2%. The Dow Jones Industrial Average (^DJI) dropped more than 600 points, or almost 1.5%.
SNP - Delayed Quote•USD
S&P 500 (^GSPC)
5,778.15
-71.57
(-1.22%)
At close: March 4 at 4:52:59 PM EST
^GSPC^DJI ^IXIC
Tech led the sell-off, with shares of Nvidia (NVDA) sinking more than 8%. Amazon (AMZN) sank 3%, while Tesla (TSLA) dropped 2%.
The
threat of tariffs has weighed on the market, with hopes of another
delay of levies against the US trading partners faded following the
president's comments.
"They're all set. They go into effect tomorrow," Trump said Monday afternoon.
Meanwhile,
energy stocks declined on Monday as oil plummeted after the
Organization of Petroleum Exporting Countries said the cartel would
start adding some barrels back onto the market after roughly two years
of production cuts.
Ines Ferré
Bitcoin pares gains, hovers near $86,000
Cryptocurrencies
pared gains on Monday following a sharp rally in reaction to President
Trump's announcement on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve.
Prices for the tokens shot up before giving up some of their sharp gains booked following the President's post on social media.
By
Monday at around 3:15 p.m. ET, bitcoin was trading south of $86, 000,
down from $95,000 immediately following the announcement.
CCC - CoinMarketCap•USD
Bitcoin USD (BTC-USD)
87,624.20
+4,527.40
+(5.45%)
As of 8:03:00 AM UTC. Market Open.
BTC-USDETH-USD XRP-USD
Ines Ferré
Losses accelerate after Trump says "no room left" for negotiations with Mexico, Canada
The
markets sank to session lows with Tech and Energy stocks leading the
losses after President Trump said there was "no room left" for
negotiations with Canada and Mexico and tariffs against imports from
those countries would go forward on Tuesday.
Nvidia (NVDA), also weighed by reports of the tech giant’s AI chips reaching China despite export controls, dropped 9%.
The S&P 500 (^GSPC) fell more than 2% while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 3%. The Dow Jones Industrial Average (^DJI) fell 1.9%.
Nasdaq 100 Monday, March 3, 2025 at 3:35 p.m. ET.
Ines Ferré
Oil drops to lowest level of year as OPEC says it will add barrels to market
Oil
tumbled 2% to its lowest level of 2025, after the Organization of
Petroleum Exporting Countries (OPEC) said it will restart some of its
curbed production, while a report about sanctions relief for Russia also
weighed on energy prices.
The decision to
begin adding 138,000 barrels a day in April surprised market
participants. Many Wall Street analysts expected the cartel would delay
the unwinding of production cuts which began in 2023.
In
recent years the US and other countries gained market share while OPEC
reduced production in an effort to keep a floor on prices.
On Monday afternoonWest Texas Intermediate crude (CL=F) declined more than 2% to $68 per barrel. Brent futures (BZ=F) also dropped to trade near $71.
Shale
producers will likely scale back new well production if oil continues
its downward path given higher drilling costs said Ed Hirs, senior
fellow at the University of Houston.
"Producers
are going to be squeezed," Hirs told Yahoo Finance. "The vast majority
will not drill wells at WTI less than $70 per barrel."
Why Trump 2.0 may not worry about a falling stock market just yet
Investors anxious for President Trump to return to his first-term playbook of tweeting about the stock market may have a long wait ahead of them.
While
tariff talk has dampened equity prices in recent weeks, a growing
number of Wall Street strategists point to Trump's likely first order of
business: lowering bond yields — even if it comes at the expense of a
falling S&P 500 (GSPC).
"It’s
reasonable to think that the index has to fall quite a bit more before
Trump views it as a concerning signal," UBS Financial Services' Jason
Draho wrote in a client note on Monday, noting the S&P 500 is
sitting at a level below what it was on Inauguration Day but still
higher than it was on Election Day.
Cboe Indices•USD
CBOE Interest Rate 10 Year T No (^TNX)
4.2100
+0.0300
+(0.72%)
At close: March 4 at 1:59:53 PM CST
"There’s
also a strong case that the relevant Trump put right now is for
Treasuries," he wrote, arguing that "high inflation and rates at the
start of Trump 2.0 favor policies that result in disinflationary growth,
in contrast to reflation that was welcome during Trump 1.0."
He
added that the best indication of a Treasury put is that Trump himself
has tweeted very little about stock market performance, instead posting
more often about the debt ceiling and government spending.
"This
leads to another conjecture, which is that the Trump Administration may
not view slow growth due to higher tariffs and government spending cuts
as a policy error, but rather as a necessary step to higher growth
later on," Draho wrote.
Ines Ferré
Gold prices rally nearly 2% as Trump tariffs loom
Gold rebounded from its worst week of the year as the US dollar (DX-Y.NYB) eased and buyers flocked to the safe-haven asset in anticipation of President Donald Trump implementing new tariffs.
On Monday, gold futures (GC=F)
gained more than 1.5% to hover below $2,900. The precious metal
rebounded from a loss of roughly 3% last week, when a strong US dollar
weighed on the commodity.
Dow, S&P 500, Nasdaq sink to session lows as Nvidia falls 7%
The major averages fell to session lows as selling intensified in afternoon trading on Monday and shares of Nvidia (NVDA) dropped 7%.
Nvidia stock sank after reports surfaced of the tech giant’s AI chips reaching China despite export controls.
The S&P 500 (^GSPC) fell 0.7% while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1.2%. The Dow Jones Industrial Average (^DJI) fell 0.6%.
Yahoo Finance Nasdaq 100 on Monday, March 3, 2025.
Ines Ferré
Ray Dalio: Debt crisis could cause 'economic heart attack' for US economy in the next 3 years
Yahoo Finance's Alexandra Canal reports:
Billionaire
hedge fund manager Ray Dalio has a bearish outlook on the US economy,
citing the escalating debt crisis as the Trump administration attempts
to wrangle an annual deficit that topped $1.8 trillion in fiscal 2024 alone.
In an interview with Bloomberg's Odd Lots podcast
published Monday, Dalio said the US is on the brink of experiencing an
"economic heart attack" within the next three years if the
administration does not commit to actively reducing the deficit, which
now makes up about 7.5% of GDP.
"When
debts rise relative to the incomes that are needed to service the debt,
it's like plaque building up in the circulatory system," he said,
adding the debt crisis has now entered a critical "inflection point" as
interest payments pile on top of existing debt.
That report was followed by news that Singapore is probing Nvidia’s customers Dell (DELL) and Super Micro Computer (SMCI)
— companies that make servers using the chipmaker’s Blackwell GPUs
[graphics processing units] — for potentially violating US export
restrictions in shipping servers that may contain Nvidia chips from
Singapore to Malaysia. Malaysia is reportedly a throughpoint of chip
smuggling to China.
On
Monday, two separate releases showed activity in the manufacturing
sector slowed in February while construction spending fell more than
anticipated in January. The Atlanta Fed's GDPNow tool,
which uses already released data in the quarter to project the pace of
US economic growth, now projects GDP fell by 2.8% in the first quarter,
down from Friday's projection of a 1.5% decline.
Economists at Oxford Economics also slashed their GDP estimate following this morning's releases.
"The
January figures of private construction have lowered our estimate of Q1
GDP to 0.6% annualized, down from 1% at the end of last week and well
below the 2.5% penciled into the February baseline forecast," Oxford
Economics lead US economist Bernard Yaros wrote in a note on Monday.
Ines Ferré
Tesla stock pops as Morgan Stanley predicts shares will rally to $430 on AI and robotics play
Tesla stock (TSLA)
rose 2% on Monday as Morgan Stanley analyst Adam Jonas said he sees
shares of the EV giant rising to $430 as it diversifies into artificial
intelligence and robotics.
NasdaqGS - Nasdaq Real Time Price•USD
Tesla, Inc. (TSLA)
272.04
-12.61
(-4.43%)
At close: March 4 at 4:00:01 PM EST
276.90
+4.86
+(1.79%)
After hours: March 4 at 7:59:59 PM EST
Shares of the EV maker plummeted almost 28% in February
as the company's EV sales slumped, leaving investors to wonder whether
CEO Elon Musk's involvement in politics was turning off buyers.
Jonas
predicted Tesla's full-year 2025 deliveries could decline year over
year, "creating an attractive entry point" for investors. The analyst
reinstated Tesla as a top pick for the auto sector, with a price target
of $430 (a roughly 50% increase from Friday's close of $292.98) and a
bull case of $800.
"Tesla’s softer auto
deliveries are emblematic of a company in the transition from an
automotive ‘pure play’ to a highly diversified play on AI and robotics,"
he added.
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