Stock market today: S&P 500, Nasdaq fall, Dow wavers after Trump delays tariffs against Mexico

Published On Feb 3, 2025, 11:49 AM

US stocks experienced significant declines on Monday following President Trump's announcement of new tariffs on imports from China, Mexico, and Canada. The markets largely recovered after Trump delayed the tariffs on Mexican imports by a month, a move made after negotiations with Mexican President Claudia Sheinbaum. However, tariffs of 25% on Canadian imports and 10% on Chinese goods are still set to take effect. Major stock indices like the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all faced downward pressure, particularly in the technology and consumer discretionary sectors, where companies like Apple, Tesla, and Nvidia were adversely affected. Defensive sectors such as healthcare and consumer staples saw gains as investors sought safer assets amidst the trade uncertainties. In international markets, European stocks fell sharply in reaction to the tariffs, especially among auto manufacturers, while Asian markets also took a hit. Overall, Wall Street analysts and investors remain cautious about the potential long-term impacts of these tariffs on the market and economic growth.

Stock Forecasts

AAPL

Negative

With the continued threat of tariffs and the potential for escalated trade tensions, stocks that are highly exposed to these tariffs, particularly in the tech and automotive sectors, are likely to face downward pressure in the near term. Defensive sectors may perform better as investors seek stability in uncertain times.

TSLA

Negative

Given the significant impact of tariffs on companies reliant on imports, automotive stocks such as Ford and General Motors, as well as major tech firms like Nvidia and Tesla, are likely to see a decrease in stock prices as the market reacts to these trade concerns.

XLV

Positive

Defensive sector ETF like XLV may see increased interest as investors move towards safer assets in times of uncertainty, indicating a more stable performance compared to broader indices.

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