The U.S. stock market sold off Monday as Wall Street digested President Donald Trump’s tariffs on Canadian, Chinese and Mexican goods set to go into effect Tuesday, though much of the losses were concentrated in Michigan’s auto sector and Silicon Valley.
Stocks slumped Monday in response to Trump's impending tariffs.
Broad indexes tumbled Monday morning, as the benchmark S&P 500 fell 1.5% by 9:45 a.m. EST, the blue chip Dow Jones Industrial Average dropped 1.2%, or 540 points, and the tech-concentrated Nasdaq dipped 1.9%.
Though 453 of the S&P’s 500 constituents were negative Monday, the companies hardest hit by the tariff slide largely fell into four buckets: alcoholic beverage purveyors, automakers, multinational technology firms with heavy China exposure and cryptocurrency-focused companies.
Shares of Constellation Brands (-5%), which controls the U.S. distribution for Mexican beers Corona and Modelo, tanked to their lowest level since October 2020.
American car companies, an industry heavily reliant on Canadian and Mexican imports, also flailed, with car stocks declining across the board, including Ford (-4%), General Motors (-6%), Jeep parent Stellantis (-5%) and Elon Musk-led Tesla (-5%).
Silicon Valley giants Apple (-3%) and Nvidia (-5%), two of the American multinational companies with the highest proportion of sales in China, faltered, while semiconductor chip players including Broadcom (-3%) and Intel (-3%) suffered as the industry heavily reliant on the global supply chain digested the trade conflict.
And crypto-heavy stocks suffered as crypto prices dove over the weekend, including shares of leveraged bitcoin whale MicroStrategy (-5%), exchanges Coinbase (-6%) and RobinHood (-4%) and bitcoin miner Marathon Digital (-7%).
About 5%. That’s how much of a hit the S&P’s fair-value price would take, Goldman Sachs strategists led by David Kostin wrote in a late Sunday note to clients. Goldman estimates a 2% to 3% total hit to corporate earnings directly from the tariffs and a further ding as policy uncertainty causes the market to reassess the historically lofty price-to-earnings ratios now enjoyed by American stocks.
Digital asset prices have tanked in recent days, with bitcoin down 7% since Friday to about $96,000, while the next most valuable crypto tokens, ethereum network’s ether and Ripple’s XRP, are down more than 18% apiece since Friday. The selloff has wiped off nearly $500 billion in market value for crypto since Friday, according to CoinGecko, as the global crypto market fell to its lowest level since mid-November at $3.19 trillion. The crypto correction came as investors largely fled riskier assets and the dollar strengthened, a negative for bitcoin as it tends to weaken when the dollar shows its weight as the de facto global reserve currency.
Should the tariff-inspired losses continue, it’ll be the second consecutive brutal start to the week for U.S. equities. The S&P and Nasdaq fell 1.5% and 3.1%, respectively, last Monday as the market reacted to the release of a comparatively cheaply developed artificial intelligence model from China’s DeepSeek. Nvidia also led those losses, falling 17% and losing a record $590 billion in market value. The American AI leader Nvidia fell to its lowest intraday share price since early September this Monday.
“The fundamental concern raised by the latest announcements is that tariff policy applied towards achieving non-economic objectives may broaden and tilt the US policy mix into a far less business-friendly stance,” Bruce Kasman, JPMorgan Chase’s global head of economic research, wrote Monday, signaling the broader Wall Street agita that Trump may pursue further actions unpopular among growth and bottom line-focused investors.