Stock Market Today: Dow, S&P 500, and Nasdaq Futures Tumble as Trump Tariff Impact Drags On

 

U.S. stocks dropped before the bell on Monday but managed to recover some losses as markets assessed the effects of President Trump's rapidly evolving tariff policies.

Futures linked to the S&P 500 (ES=F) fell 2.4%, while those for the tech-heavy Nasdaq 100 (NQ=F) retreated 2.8%. Dow Jones Industrial Average futures (YM=F) dropped 2%, or roughly 800 points.

These declines came after a series of sharp losses, which followed President Trump's remarks suggesting he would not adjust his trade policy to ease market concerns. In response to a reporter’s question, he stated, "Sometimes you have to take medicine to fix something."

Investors were also weighing JPMorgan Chase CEO Jamie Dimon's view that new tariffs wouldn't trigger a recession, despite his warning that U.S. growth and inflation could take a hit.

Still, the markets were set to extend a two-day sell-off. The Nasdaq Composite (^IXIC) entered bear market territory on Friday, contributing to Wall Street's $5 trillion loss—the worst week since 2020.

In retaliation, China has already imposed its own tariffs, and the European Union is preparing countermeasures. U.S. tariffs, which now stand at 10% for most trading partners, went into effect over the weekend, with additional duties on certain "bad actors" slated to begin Wednesday.

Markets in Asia and Europe took a sharp downturn on Monday, with growing concerns that Trump may not negotiate on his aggressive tariff hikes, possibly leading to a global economic slowdown. Japan’s Nikkei 225 (^N225) and Hong Kong’s Hang Seng (^HSI) both entered bear markets.

Meanwhile, oil prices dropped over 3%, falling below $60 per barrel for the first time since 2021, after a 4% plunge overnight.

Officials from the Trump administration defended the tariff strategy during Sunday talk shows. Treasury Secretary Scott Bessent dismissed concerns that the tariffs could lead to a recession. Along with economic adviser Kevin Hassett, Bessent noted that over 50 countries have reached out to negotiate, raising questions about the logistics of the tariffs, which are set to go into effect this week. Commerce Secretary Howard Lutnick confirmed that the tariffs would "definitely stay in place for days and weeks."