Stock market today: Dow, S&P 500, Nasdaq sink after Trump hits Canada, Mexico, China with tariffs

The implementation of these tariffs is likely to create more volatility in the market due to concerns over possible retaliatory measures from affected countries. Industries most sensitive to tariffs, including automotive and consumer discretionary, may face significant challenges, leading to further stock declines. The broader economic impact could also result in reduced consumer spending, impacting overall GDP growth.

Given the uncertainty surrounding the economic implications of the tariffs and potential retaliatory measures from Canada and Mexico, the overall market could face downward pressure. Energy stocks might initially see an uptick due to rising crude oil prices; however, growth may be limited as tariffs take effect and their ripple effects become clear.

As tariffs on automobiles are set to negatively affect the margins of car manufacturers and push upward consumer prices for vehicles, we can expect continued weakness in this sector. Ford and General Motors have already shown declines in their stock prices, and this trend may continue as the tariffs kick in, impacting their sales volumes.

Nvidia shares are expected to decline further in light of the tariff announcements and the impending trade war with significant uncertainty and risk. This could impact sentiment around technology stocks as investors reassess exposure to potential export limits and heightened operational costs.

With the tariffs expected to increase inflationary pressures, leading to potentially higher interest rates, the Federal Reserve's decisions may also influence overall market momentum. This environment could lead to a prolonged bearish phase for the S&P 500, as earnings projections are revised downward in response to the economic fallout from the tariffs.