Jamie Spencer
The S&P 500 extended its February downturn on Monday, dropping 0.9% as concerns over President Donald Trump’s looming tariff policies weighed on investor sentiment. The Dow Jones Industrial Average fell 276 points, or 0.6%, while the Nasdaq Composite tumbled 1.4%, dragged down by a 6% decline in Nvidia shares.
February’s Market Struggles Continue
Monday’s losses followed a rough February for the major indexes. The S&P 500 and Dow both declined more than 1% for the month, while the Nasdaq Composite suffered a 4% drop—its worst monthly performance since April 2024. The tech sector, which had been a major driver of the market’s recent gains, saw increased volatility.
Weak Economic Data Adds to Investor Concerns
Soft economic reports on the U.S. manufacturing and construction sectors, released Monday, added to the market’s unease. These data releases mark the beginning of a crucial week for economic indicators, with the February jobs report set to be released on Friday.
Tariffs Loom Over Markets
Market sentiment remained fragile ahead of Trump’s planned tariffs on key trading partners. Investors fear these policies could reignite inflation and stifle economic growth. Commerce Secretary Howard Lutnick stated on Fox News that the tariff rate on Mexico and Canada, set to take effect Tuesday, remains “fluid” and could be lower than the proposed 25%. Meanwhile, a 10% duty on Chinese imports has been finalized.
Treasury Secretary Scott Bessent mentioned on CBS that Mexico has offered to match U.S. tariffs on China, potentially as a means to avoid being subjected to U.S. import duties.
“Whether the stock market can survive this change remains to be seen,” said Chris Rupkey, chief economist at FWDBONDS. “One way or another, tariffs will be a shock for the economy.”
Uncertainty Continues to Weigh on Markets
The market’s weak start to March signals ongoing uncertainty, with trade policies, inflation concerns, and upcoming economic data releases driving volatility. Investors will be closely watching for further developments on tariffs and Friday’s job report to gauge the economy’s trajectory.
