Following a strong start, the S&P 500 fought for direction on Monday, retreating as investors remained cautious ahead of a major deadline for former US President Donald Trump’s trade plans. Economic worries worsened, damaging any comeback from the February selloff.
The benchmark indexes, S&P500 and Dow Jones Industrial Average were down 0.3 percent, while the Nasdaq Composite fell 0.5 percent, pulled down by a 4.6 percent plunge in Nvidia. These losses came after a difficult February for Wall Street, with all three leading indices closing the month negatively. The Dow and S&P 500 fell more than 1%, while the Nasdaq Composite fell 4%—its worst month since April 2024. Investor confidence remained weak as Trump’s expected trade tariffs threw a pall over the market. Concerns that the new levies will increase inflation and hinder commerce have driven volatility in recent weeks.
Commerce Secretary Howard Lutnick said in a TV interview Sunday that tariffs against Mexico and Canada, which are slated to go into effect on Tuesday, are still “fluid” and might be lower than the previously suggested 25%.Â
However, he stated that a 10% tariff on Chinese goods was “locked in.” Meanwhile, Treasury Secretary Scott Bessent noted that Mexico has offered to match U.S. tariffs on China, presumably to avoid penalties on its exports. Meanwhile, cryptocurrencies rallied sharply when Trump revealed plans for a US strategic crypto reserve, including bitcoin and ether. Bitcoin climbed 10% to about $94,000, recovering from a three-month low of below $80,000 last week.
European markets increase:
Europe rose on Monday, buoyed by a rally in defense stocks following European security discussions that stressed increasing military expenditure. The Stoxx 600 index in Europe varied in early trading, but by 2 p.m. in London, it was up 1.2%. The Stoxx Europe aerospace and defense index rose 8% and is on track for its best session in five years.
The Sensex and Nifty finished flat on March 3 after plunging more than half a percent at midday. While oil and gas and financial services companies drove the Nifty down, IT stocks offered some support. Volatility dominated the session as global trade fears kept market confidence shaky. The indexes opened higher to recover from their longest monthly losing run since 1996. A surprising increase in domestic GDP temporarily buoyed confidence, but continuing global uncertainty swiftly reversed the gains.
