Mon Mar 03 22:40:00 UTC 2025: ## US Stocks Plunge on Trump’s Tariff Announcement; Tech and Energy Sectors Hit Hardest

**New York, NY –** US stock markets experienced a sharp downturn on Monday, driven by President Trump’s announcement that new tariffs on imports from Canada and Mexico would take effect immediately. The S&P 500 fell 1.7%, marking its worst day of 2025, while the Nasdaq Composite plummeted 2.6%. The Dow Jones Industrial Average lost nearly 650 points (approximately 1.5%).

The sell-off was particularly severe in the technology sector, with Nvidia’s stock tanking over 8%. All seven of the “Magnificent 7” tech giants experienced declines. Energy stocks also suffered significant losses, mirroring a drop in oil prices following OPEC’s decision to increase production. West Texas Intermediate crude fell over 2% to $68 per barrel.

President Trump’s declaration that tariff negotiations with Canada and Mexico were over, coupled with a planned increase in tariffs on Chinese imports from 10% to 20%, fueled the market’s decline. The White House also reportedly considered offering sanctions relief to Russia, adding further uncertainty to the situation.

Adding to investor anxieties, recent economic data has painted a bleak picture of the US economy. The Atlanta Fed’s GDPNow tool now projects a 2.8% decline in first-quarter GDP, while Oxford Economics slashed its own estimate to 0.6%. Consumer spending also fell unexpectedly in January, adding to concerns about an economic downturn.

Despite an initial rally following President Trump’s Sunday announcement of a new US strategic cryptocurrency reserve, including Bitcoin, Ether, XRP, Solana, and Cardano, the prices of these cryptocurrencies pared back their gains on Monday. Bitcoin, for example, traded below $86,000 after reaching $95,000 earlier.

The market awaits key economic indicators this week, including Friday’s jobs report and upcoming retail earnings reports from Target and Costco, for further insights into the state of the US economy and consumer confidence. Analysts remain divided on the market’s future trajectory, with some predicting further declines before any significant rebound. Gold prices, however, rose over 1.5%, as investors sought safe haven assets amidst the uncertainty.

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