Stocks Post Biggest Loss of the Year on Trump’s Tariff Plans
Published On Mar 3, 2025, 4:21 PM
The stock market saw significant losses on Monday, with the S&P 500 dropping 1.8% and the tech-heavy Nasdaq tumbling 2.6%. This decline was fueled by President Trump's announcement of new tariffs of 25% on imports from Canada and Mexico, heightening fears of increased prices and prolonged elevated interest rates. The Russell 2000 index of smaller companies fell by 3.1%, indicating further economic uncertainty as investor sentiment weakens in response to both tariffs and disappointing manufacturing data.
Stock Forecasts
SPY
Negative
The imposition of tariffs is likely to negatively impact corporate profits and consumer prices, while the Federal Reserve might be compelled to maintain higher interest rates, which could hinder economic growth.
IWM
Negative
Investors typically retreat from equities during periods of high uncertainty and volatility, especially given the downward trend in the Russell 2000 index and manufacturing data, which could lead to further declines.
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