S&P 500 Dips as Trump’s Tariffs Take Effect on Trading Partners
The S&P 500 experienced a decline of 0.50% on Friday, closing at 6,040.53, as President Donald Trump’s tariffs targeting key U.S. trading partners officially took effect over the weekend.
- The Dow Jones Industrial Average dropped 337.47 points (-0.75%), finishing at 44,544.66, primarily impacted by Chevron (NYSE:CVX).
- The Nasdaq Composite, heavily weighted with tech stocks, fell by 0.28% to 19,627.44.
- Despite a 3.07% decrease on Monday, the Nasdaq ended the week with a 1.6% overall drop, while the S&P 500 lost 1%. However, the Dow managed a modest gain of 0.3% throughout the week.
- Shares of Nvidia (NASDAQ:NVDA) plunged nearly 17% on Monday, closing the week down 16%.
January’s Market Close with Gains
Despite the fluctuations, each of the three major indexes finished January positively:
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S&P 500: +2.7%
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Nasdaq: +1.6%
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Dow: +4.7%
Escalating Trade War Dynamics
On Saturday, Trump formally imposed widespread tariffs on imports from Mexico, Canada, and China.
- Mexico and Canada are subjected to a 25% import tariff, while China faces a 10% duty.
- This action aims to address issues related to illegal immigration and fentanyl imports.
- Immediate retaliatory responses:
- Mexico and Canada have vowed to impose counter-tariffs.
- China plans to take action at the WTO and may engage in further countermeasures.
Market Outlook: What Lies Ahead?
Market participants are closely watching rising global trade tensions, which could lead to heightened inflationary pressures and disruptions in supply chains.
To track these ongoing trends, explore:
- Earnings Calendar API โ Understand how companies are adapting to trade challenges.
- Sector P/E Ratio API โ Identify shifts in valuations across sectors.
Given the escalating trade tensions, the market anticipates further volatility in the weeks to come.