Stock market today: Dow sinks, S&P 500 posts worst day of 2025 after Trump forges ahead on tariffs

The confirmation of tariffs is likely to weigh heavily on market sentiment and investor confidence, particularly in the tech sector, as it raises concerns about economic growth and corporate earnings. The expected economic slowdown could lead to prolonged bearish trends in the stock market unless unexpected positive data emerges from upcoming reports.

As the tariffs come into effect, general market weakness, particularly in consumer and tech stocks, is anticipated. Investors are likely to react cautiously until clearer economic indicators are provided, such as the jobs report.

Gold prices are expected to rise as investors seek safe-haven assets amidst economic uncertainties caused by tariffs and weaker economic forecasts. The demand for gold as a hedge may drive up prices in the near term.

Companies like Target and Costco reporting earnings this week could provide some insights into consumer resilience; however, due to the current economic climate, the outlook remains cautious which could lead to unfavorable performance in the retail market.

The ongoing discussions surrounding cryptocurrencies and their inclusion in a strategic reserve could lead to a positive outlook for cryptocurrency-related stocks as regulatory clarity emerges, despite recent price fluctuations.