Wall Street Closes Lower Amid Fears Over Impact of Trump’s Tariffs
Wall Street’s main indexes closed lower on Monday, though they recovered some early losses after President Donald Trump delayed tariffs on Mexico. His initial orders imposing levies on three countries had triggered a global flight to safe-haven assets.
Trump announced a one-month pause on planned tariffs against Mexico after the country agreed to deploy 10,000 National Guard members to its northern border to curb the flow of illegal drugs, particularly fentanyl.
“Trump is making it clear that tariffs will be a primary tool to achieve a variety of objectives,” analysts noted. Citi experts warned that “if tariffs persist, markets are likely to decline further, and inflationary effects could emerge.”
The S&P 500 fell 45.96 points (0.76%) to 5,994.57, while the Nasdaq Composite dropped 235.48 points (1.20%) to 19,391.96. The Dow Jones Industrial Average lost 122.75 points (0.28%) to 44,421.91.
Sector Performance and Manufacturing Activity
The 11 major S&P sectors showed mixed performance—defensive stocks, such as healthcare and consumer staples, led gains, while information technology and consumer discretionary sectors saw the biggest losses.
The Russell 2000, which tracks small-cap stocks with high economic sensitivity, rebounded from a three-week low.
On the economic data front, U.S. manufacturing expanded in January for the first time in over two years, according to the Institute for Supply Management (ISM).
This week, several major companies are set to release their quarterly earnings reports.
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