Stock market today: Dow sinks, Nasdaq flips positive as Trump tariffs take effect, trade war escalates

Published On Mar 4, 2025, 2:45 PM

US markets reacted negatively to new tariffs imposed by President Trump on Canada, Mexico, and China, which has raised concerns of a looming trade war. The S&P 500 and Dow saw significant declines, erasing all post-election gains as fears of slow economic growth and rising inflation took hold. Specific companies like Target and Best Buy have also expressed concerns about profit pressures due to these tariffs, while stocks in tech like Nvidia saw slight recoveries. Overall, market sentiment is bearish due to uncertainty around economic growth prospects linked to the tariffs.

Stock Forecasts

SPY

Negative

Investors should be cautious as the trade tensions and tariffs introduce significant uncertainty into the market, likely leading to continued volatility. Companies exposed to tariffs might struggle, while investment in defensive sectors or stocks less affected by international trade could be prudent.

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