Dow closes 345 points lower after roller coaster trading amid tariff fallout
The Dow dropped 345 points, or 0.9%, while the tech-heavy Nasdaq ticked up 0.1%. The S&P 500 closed down 0.2%.
Markets dropped sharply at the open of trading. Within minutes, markets recovered those losses and moved higher in response to a social media post from Trump indicating a willingness to negotiate tariffs.
"Countries from all over the World are talking to us," Trump said on Truth Social. "Tough but fair parameters are being set."
Soon afterward, Trump escalated the United States' trade spat with China, reversing market gains.
Trump threatened to slap an additional 50% tariff on China, unless the country withdraws 34% retaliatory tariffs announced last week. Those retaliatory tariffs came in response to a 34% tariff announced by the U.S. days earlier, which came on top of 20% tariffs already imposed on China. The threatened 50% tariff would bring total U.S. tariffs on Chinese goods to 104%.
Ultimately, the market continued to move lower on Monday. That selloff extended losses that stretch back to Trump's announcement of far-reaching tariffs last week. The Dow suffered its worst week since 2020, and the Nasdaq ended last week in a bear market.
The murky path forward for tariffs -- and, in turn, the global economy -- helped fuel seesaw trading on Monday, Bret Kenwell, U.S. investment analyst at eToro, told ABC News.
"It's an immense amount of volatility at the moment amid an immense amount of uncertainty," Kenwell said.
Ivan Feinseth, a market analyst at Tigress Financial, also underscored the high stakes of tariffs.
"You can draw a line from these tariffs to the fact they could slow growth, increase inflation and put the Federal Reserve on hold. Now everything is in a panic," Feinseth said.
The brief upsurge for markets in response to potential tariff negotiations, however, indicated eagerness among investors for a thaw in global trade tensions, Feinseth added.
"The market is wound up to bounce back on positive news," Feinseth said.
The sell-off on Monday also hit crypto markets.
Bitcoin, the world's largest cryptocurrency, fell 0.9%. The price of a bitcoin stands at about $79,000, which marks a roughly 30% drop from a peak attained in January.
Ether dropped 3.4%, while lesser-known coin Solana fell 1.1%.
Tokyo's Nikkei 225 index lost nearly 9% shortly after the market opened on Monday, the steep decline triggering a circuit breaker that temporarily halted trading. Japan's broader TOPIX index sank 8%.
In Taiwan, the Taiex lost 9.7%, while in Singapore the STI fell more than 8%.
South Korea's KOSPI index fell more than 5.5% in Monday trading, with Australia's S&P/ASX 200 sliding more than 6% before recovering slightly.
Hong Kong's Hang Seng Index dropped 13.22% -- its worst one-day performance since 1997 during the Asian Financial Crisis -- with Chinese tech stocks like Alibaba and Baidu among the big losers.
MORE: Trump tariffs live updates: US 'stronger' despite market turbulence, Trump says
On the mainland -- where there are fewer international investors -- the Shanghai Composite Index dropped more than 7%, despite being buoyed by state-owned investors known as the "National Team."
India's stock markets also struggled. The BSE's Sensex dropped 5.19% while the broader Nifty tumbled 5%.
Asian markets collectively posted their worst day trading session since 2008.
European indexes followed suit on Monday morning.
The British FTSE 100 index fell 6% upon opening, while the pan-European Stoxx 600 index dropped more than 6%.
Germany's DAX index fell 10%, France's CAC lost 6.6% and Italy's FTSE MIB slid 5.7%.
Investors expected continued market turmoil on Monday in response to Trump's "Liberation Day" tariffs announced last week.
Speaking with reporters on Air Force One on Sunday, Trump addressed the recent market turbulence and subsequent fears of an imminent recession.
"Now what's going to happen with the market? I can't tell you, but I can tell you, our country has gotten a lot stronger, and eventually it'll be a country like no other, it'll be the most dominant country economically in the world," Trump said.
"I don't want anything to go down, but sometimes you have to take medicine to fix something and we have such a horrible -- we have been treated so badly by other countries because we had stupid leadership that allowed this to happen," the president added.
MORE: Dow closes down 2,200 points, Nasdaq enters bear market amid tariff fallout
U.S. markets closed significantly down on Friday. The Dow Jones Industrial Average plummeted 2,230 points, or 5.5%, while the S&P 500 plunged 6%.
The tech-heavy Nasdaq declined 5.8%. The decline put the Nasdaq into bear market territory, meaning the index has fallen more than 20% from its recent peak.
The trading session on Friday marked the worst day for U.S. stocks since 2020. The second-worst day for U.S. stocks since 2020 happened on Thursday, a day earlier.
ABC News' Ellie Kaufman, Karson Yiu, Zunaira Zaki, Max Zahn and Hannah Demissie contributed to this report.
Dow closes 345 points lower after roller coaster trading amid tariff fallout originally appeared on abcnews.go.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
a minute ago
- CNBC
Many unknowns about the nature of 'security guarantees': Chatham House
Jaroslava Barbieri, research fellow at Chatham House, says the overall mood from the Trump-Ukraine talks on Monday was one of "cautious optimism," but there were many unknowns about promised "security guarantees."
NBC News
2 minutes ago
- NBC News
Trump administration revoked more than 6,000 student visas, State Department says
WASHINGTON — The administration of President Donald Trump has revoked more than 6,000 student visas for overstays and breaking the law, including a small minority for 'support for terrorism,' a State Department official said Monday. The move, first reported by Fox Digital, comes as the Trump administration has adopted a particularly hard-line approach toward student visas as part of its immigration crackdown, tightening social media vetting and expanding screening. Directives from the State Department this year have ordered U.S. diplomats abroad to be vigilant against any applicants whom Washington may see as hostile to the United States and with a history of political activism. Around 4,000 visas were canceled because the visitors broke the law, with the vast majority being assault, the official said. Driving under the influence of alcohol and drugs and burglary were other offenses, the official added. About 200 to 300 visas were revoked for terrorism, the official said, citing a rule about visa ineligibility under the State Department's Foreign Affairs Manual. The rule identifies ineligibility grounds generally as 'engaging in terrorist activities' and 'having certain links to terrorist organizations.' The official did not say which groups the students whose visas have been revoked were in support of. Trump has clashed with several top-level U.S. universities, accusing them of becoming bastions of antisemitism following large-scale student protests advocating Palestinian rights amid the Gaza war. In his clash with Harvard, Trump has frozen funding for investigations and threatened to remove the university's tax-exempt status, prompting several European nations to increase research grants to attract talent. Secretary of State Marco Rubio has said he has revoked the visas of hundreds, perhaps thousands of people, including students, because they got involved in activities that he said went against U.S. foreign policy priorities. Trump administration officials have said that student visa and green card holders are subject to deportation over their support for Palestinians and criticism of Israel's conduct in the war in Gaza, calling their actions a threat to U.S. foreign policy and accusing them of being pro-Hamas. A Tufts University student from Turkey was held for over six weeks in an immigration detention center in Louisiana after co-writing an opinion piece criticizing her school's response to Israel's war in Gaza. She was released from custody after a federal judge granted her bail.
CNBC
2 minutes ago
- CNBC
Trump promised Ukraine 'security guarantees': Here's what they could look like
On the face of it, talks on Monday between U.S. President Donald Trump and Ukraine's President Volodymyr Zelenskyy and European leaders went well. The U.S. and Ukrainian leaders were pictured looking jovial and smiling together — a far cry from the extraordinary shouting match and public humiliation inflicted on Zelenskyy during his last trip to the White House in February. Monday's talks, which involved a raft of European leaders, appeared to make progress toward ending the protracted war between Russia and Ukraine, with Trump saying a meeting between Russian President Vladimir Putin and Zelenskyy would be arranged, followed by a trilateral meeting that he would join. The most significant development result for Kyiv and Europe, however, was Trump's statement that security guarantees for Ukraine would be "provided" by European countries in "coordination with the U.S." Describing that as a "major step forward," Zelenskyy said later that the package of security guarantees for Ukraine — highly coveted by Kyiv's leadership and seen as a deterrent to future Russian aggression — will include a massive purchase of American weapons, with financing reportedly supported by Europe. The agreement would be "formalized on paper within the next week to 10 days," he said. As for what the security guarantees could include, the detail is still scant. Trump commented at a post-talks press conference that Europe would "take a lot of the burden" for these, but said the U.S. would help and would make it "very secure." In any case, security guarantees likely mean that Europe, and the so-called "Coalition of the Willing" of countries offering to oversee a peace deal, is on the hook to fulfill what they've previously promised. French President Emmanuel Macron hinted Tuesday that the "first security guarantee we are working on — and it is the most important — is a strong Ukrainian army, composed of several hundred thousand men, well equipped, with defense systems and higher standards." "The second is to have reassurance forces, the British, the French, the Germans, the Turks, and others ready to carry out these operations — not on the front line, not in a provocative way, but reassurance operations in the air, at sea, and on land. The goal is to send a strategic signal: peace in Ukraine is also our concern," he told French broadcaster TF1-LCI, in comments translated by NBC News. Jaroslava Barbieri, research fellow at Chatham House, told CNBC Tuesday that the overall mood from the talks on Monday was one of "cautious optimism," but there are many unknowns. "However, we have to say that the Kremlin's maximalist demands on Ukraine have not changed and so there's still a number of uncertainties about the security guarantees, the details, who is going to be doing what, if there are any troop deployments then where will they be stationed and for how long, which countries will be contributing?" she asked. European leaders have voiced misgivings over the lack of a ceasefire between Russia and Ukraine before a peace deal is negotiated, but they seem willing to acquiesce, for now, with the end goal of peace and Ukraine and Europe's security in mind. Gabrielius Landsbergis, Lithuania's former foreign minister, told CNBC Tuesday that Europe still appeared to be struggling to be heard, saying the bloc had not yet found its strength and "ability to create leverage." "What came out of the meeting yesterday was that Europe was asking the U.S. yesterday to continue its assistance, to ask for a ceasefire, to assist any stationing of troops, and then some of the leaders were even saying, 'Well, some of the Ukrainian territories might be lost, but that's a reality.' Well, that doesn't sound like Europe finding it's strength," he said. "It's more like Europe agreeing that, 'we are in a very weak position and we have to please President Trump as much as we can and we have nothing to put on the table'," he noted. What's more, it's unclear whether the Kremlin will even agree to direct talks with Zelenskyy. Putin's presidential aide Yuri Ushakov stated Monday that Trump and Putin had discussed "that it would be necessary to study the possibility of raising the level of representatives of the Ukrainian and Russian sides," but that no firm decision was made. The proposed future summits between Trump, Putin and Zelenskyy would keep a process towards a possible resolution of the conflict alive, but it would still follow the Russian script of a no-ceasefire scenario, Holger Schmieding, chief economist at Berenberg Bank, cautioned. "Putin may already set difficult conditions for a meeting with Zelenskyy. And in a meeting with Zelenskyy, Putin's major goal may be to pin the blame for any failure on Zelenskyy instead of agreeing to a truce or a final deal. The outcome remains very uncertain," he noted.
