Mon Mar 03 20:10:00 UTC 2025: ## US Stocks Plunge on Trump’s Tariff Announcement, Economic Fears Rise
**NEW YORK, March 4, 2025** – US stocks experienced a significant sell-off Monday afternoon, driven by President Trump’s announcement that tariffs on Canadian and Mexican goods will go into effect tomorrow, eliminating any possibility of further negotiations. The S&P 500 fell more than 2%, the Nasdaq Composite dropped 3%, and the Dow Jones Industrial Average shed 1.8%. This downturn follows a volatile week and a losing February for major US indexes.
The tech sector led the decline, with Nvidia shares plummeting over 9%. All seven “Mag 7” tech giants experienced losses. Investor concerns are heightened by a string of weak economic data, fueling predictions of a slowing first-quarter GDP growth. The Atlanta Fed’s GDPNow tool now projects a 2.8% decline, down from a previous estimate of 1.5%. Oxford Economics also lowered its projection.
Adding to the uncertainty, the February jobs report, due Friday, is anticipated to show only modest job growth. Meanwhile, upcoming retail earnings from Target and Costco will be closely scrutinized for clues about consumer spending, which unexpectedly fell sharply in January.
Despite the negative market sentiment, cryptocurrencies saw a boost following President Trump’s announcement Sunday that five digital assets—Bitcoin, Ether, XRP, Solana, and Cardano—would be included in a new US strategic cryptocurrency reserve. While initial gains were substantial, prices pared some of these increases by the end of Monday’s trading.
Oil prices also fell sharply, dropping 2% to their lowest level since 2025, after OPEC announced it would restart some curtailed production. This decision, exceeding market expectations, surprised analysts. The move is expected to put pressure on shale producers, potentially reducing new well production.
A Reuters report suggesting potential sanctions relief for Russia further unsettled investors. Analysts at UBS Financial Services speculate that President Trump’s focus may shift to lowering bond yields, even at the expense of further stock market declines.
Gold prices, however, rebounded, gaining over 1.5%, as investors sought a safe haven asset amid the economic uncertainty. European defense stocks rallied after a weekend meeting of European leaders focused on supporting Ukraine, suggesting increased defense spending in the region.
The week ahead will provide further economic insights with the release of the jobs report and key retail earnings. The market’s reaction to these developments will be crucial in determining the trajectory of US equities in the coming weeks.
First Piper 