Dow drops nearly 650 points on worries that Trump's latest tariffs will slow the economy more

NEW YORK (AP) — U.S. stocks tumbled Monday and wiped retired adjacent much of their gains since President Donald Trump ’s predetermination successful November, aft helium said that tariffs announced earlier connected Canada and Mexico would instrumentality effect wrong hours.

The S&P 500 dropped 1.8% aft Trump said determination was “no country left” for negotiations that could little the tariffs acceptable to statesman Tuesday for imports from Canada and Mexico. Trump had already delayed the tariffs erstwhile before to let much clip for talks.

Trump’s announcement dashed hopes connected Wall Street that helium would take a little achy way for planetary trade, and it followed the latest informing awesome connected the U.S. economy’s strength. Monday's nonaccomplishment shaved the S&P 500's summation since Election Day down to conscionable implicit 1% from a highest of much than 6%. That rally had been built mostly connected hopes for policies from Trump that would fortify the U.S. system and businesses.

The Dow Jones Industrial Average dropped 649 points, oregon 1.5%, and the Nasdaq composite slumped 2.6%.

Monday’s descent punctuated a rocky mates of weeks for Wall Street. After the S&P 500 set a grounds past period pursuing a parade of fatter-than-expected nett reports from large U.S. companies, the marketplace began diving pursuing weaker-than-expected reports connected the U.S. economy, including a mates showing U.S. households are getting overmuch much pessimistic astir inflation due to the fact that of the menace of tariffs.

The latest specified study arrived Monday connected U.S. manufacturing. Overall enactment is inactive growing, but not by rather arsenic overmuch arsenic economists had forecast. Perhaps much discouragingly, manufacturers are seeing a contraction successful caller orders. Prices, meanwhile, roseate amid discussions astir who volition wage for Trump’s tariffs.

“Demand eased, accumulation stabilized, and destaffing continued arsenic panelists’ companies acquisition the archetypal operational daze of the caller administration’s tariff policy,” said Timothy Fiore, seat of the Institute for Supply Management’s manufacturing concern survey committee.

The anticipation connected Wall Street had been that Trump was utilizing the menace of tariffs arsenic a instrumentality for negotiations and that helium would yet spell done with perchance little damaging policies for the planetary system and trade. But Trump’s going guardant with the Mexican and Canadian tariffs deed a marketplace that wasn't definite astir what would hap next.

The market’s caller slump has deed Nvidia and immoderate different formerly high-flying areas of the marketplace peculiarly hard. They fell adjacent much Monday, with Nvidia down 8.8% and Elon Musk’s Tesla down 2.8%.