4:15pm: Mixed close
Wall Street continued to post losses on Monday but tech investors ended the day on the level after the Nasdaq closed flat.
The Dow Jones led declines, falling 349 points, or 0.9%, to end at 37,966, with blue-chip stocks bearing the brunt of the pressure. The S&P 500 dipped 12 points, or 0.2%, to 5,062, as losses in the energy and financial sectors offset modest gains in technology.
The Nasdaq eked out a small gain, rising 15 points to close at 15,603, supported by continued strength in semiconductor and AI-related stocks.
Markets were rattled earlier in the day after President Trump threatened China with an additional 50% tariff starting April 9 unless Beijing removes its recently imposed 34% levies on US imports. China had announced those retaliatory tariffs last week in response to the president’s sweeping tariff proposals.
Stocks briefly bounced on social media headlines suggesting Trump might pause the planned tariffs, but the White House swiftly dismissed the reports as “fake news,” reaffirming the administration’s hardline stance.
3:41pm: Monday's headlines
JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) CEO Jamie Dimon struck a cautious tone in his annual letter to shareholders, warning that recent tariffs are likely to push inflation higher and have increased the likelihood of a recession.
Republic Airways and Mesa Air Group (NASDAQ:MESA) have announced a merger to create a larger regional airline in an all-stock transaction.
Billionaire hedge fund manager Bill Ackman has called on President Donald Trump to delay his sweeping new trade tariffs, warning they could trigger a “self-induced, economic nuclear winter.”
Jaguar Land Rover (JLR) has announced a temporary halt on shipments of its luxury vehicles to the United States in response to the recent implementation of a 25% tariff on foreign cars entering the country by president Donald Trump.
2:58pm: Trump aide: 'Not a negotiation'
White House trade adviser Peter Navarro said the Trump administration's tariff policy is not up for negotiation, calling it a necessary response to a "rigged" international trade system. In a Financial Times op-ed, Navarro described the tariffs as part of a broader strategy to restore balance and fairness in global trade.
“This is not a negotiation. For the US, it is a national emergency triggered by trade deficits caused by a rigged system,” he wrote.
Navarro also warned countries like Cambodia, Mexico, and Vietnam against helping China evade tariffs, and called for an end to non-tariff barriers that hurt American industries.
2:17pm: Turning point for global trade
This week’s trade policy announcements could mark a turning point for global trade, prompting a major shift in the US economy, UBS analysts said Monday.
The bank now expects US imports from the rest of the world to fall more than 20% over the forecast horizon, mostly within the next few quarters, returning to levels not seen since before 1986.
"The forcefulness of the trade policy action implies substantial macroeconomic adjustment for a $30 trillion economy in four to eight quarters," UBS wrote.
"Not that such a reversal is good or bad, but we went the other way over the course of 40 years. It took me twenty years to go bald. Pulling my hair out all at once would have hurt."
1:52pm: Back in the green
The Nasdaq is back in the green, up almost 0.8%, continuing a wild day in the stock market.
Additionally, the S&P 500is in positive territory, up almost 0.5%.
But the Dow is still red, down 0.4% in early afternoon trade.
12:54pm: VIX at highest level in years
Markets have been hit hard today, with volatility—tracked by the VIX—soaring to its highest point in nearly five years, approaching levels last seen during the peak of the Covid crisis.
Kathleen Brooks of XTB says markets are being driven almost entirely by headlines related to President Trump’s aggressive tariff policies, making it difficult to predict where stocks will head next.
“The tariff saga seems like it is never ending,” she said, noting that despite only three days of sharp market declines, the effects have been significant.
"The sustained market sell off, combined with President Trump’s refusal to budge when it comes to tariffs, could cause a surge in demand for dollars, which may trigger economic crises around the world, and could also work against his grand plan to reduce the US trade deficit."
12:23pm: Trump threaten additional tariffs
President Trump has threatened to impose an additional 50% tariff on China if it does not reverse a 34% increase in trade practices he called abusive.
The warning, posted on Truth Social, comes after China pledged to retaliate against earlier US tariffs.
Trump said the new tariffs would take effect on April 9 if China doesn’t act by April 8, and added that all talks with China would be canceled.
12:13pm: S&P fighting crucial battle
Just after noon ET, all three major indices were firmly in negative territory once again.
The S&P 500 saw a brief spike on Monday morning but was trading 1.7% under to start the afternoon.
"The S&P 500 is fighting a crucial battle around the psychological 5,000-point level," Quasar Elizundia, Expert Research Strategist at Pepperstone commented Monday.
"The fight for 5,000 on the S&P 500 is more than a number; it mirrors the clash between tactical “buy-the-dip” optimism and deep structural economic uncertainty."
11:36am: Back in the red
Stocks were back in the red as midday approached with the Dow dropping 1,000 points (2.6%), the S&P 500 down 2.2%, and the Nasdaq falling 2.1%.
Markets briefly turned positive on speculation that Trump might delay new tariffs by 90 days, but a White House-linked social media account dismissed the report as "fake news," causing stocks to dip again before a partial rebound.
Earlier, Trump had threatened an additional 50% tariff on China starting April 9 unless Beijing rolled back new import levies announced in response to US tariffs.
11:04am: Volatile start
The Nasdaq has swung back into the green in morning trading and the S&P 500 is approaching the flatline.
"The S&P 500 index (SPX) and Nasdaq 100 index (NDX) are in high volatility downtrends right now, mostly due to the global tariff news cycle," noted Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report.
"The April 2 tariff announcements were much higher than forecast, which has led to a sharp selloff in global stocks over the past two trading days.
"Unless there is a major change in the tone of the tariff news cycle, all charts and markets should be considered higher volatility for now."
10:22am: Week ahead
Investors face another rocky week as markets continue to digest last week's historic selloff, with few signs of relief amid mounting concerns over US trade policy, inflation data, and a flurry of Federal Reserve commentary.
The Trump administration’s decision to uphold sweeping tariffs—now pushing the tariff rate to its highest level since the early 1900s—has heightened fears of both recession and inflation, with Deutsche Bank warning that the measures could reduce GDP growth by up to 1.5 percentage points while adding a similar boost to core inflation.
Key economic data, including CPI and PPI, are due later this week, alongside speeches from several Fed officials, capping off a tense calendar.
9.50am: Bear start, but EU makes offer
Wall Street started the week in a bear market, with the S&P 500 opening down 3.8%, on course for a 20% fall from its peak in February.
But, along with the Dow Jones, which started with a loss of over 1500 points at one point, and the tech-heavy Nasdaq, all three benchmarks soon saw their losses cut below 3%.
Tesla shares started with a near 9% reverse following a bearish note from broker Wedush, which cut its price target for the electric carmaker from $550 to $315.
Just as US stocks started trading, the EU Commission president Ursula von der Leyen said "zero-for-zero tariffs" have been offered to the US, which helped lift the mood.
She said Europe "is ready to negotiate with the US" and has made the offer on industrial goods
"But we’re also prepared to respond with countermeasures. And protect ourselves against indirect effects through trade diversion."
8.06am: US stock futures point to Nasdaq bear market
US stock futures have eased off from their worst, ahead of Wall Street's first opening bell of the week.
Dow Jones futures are down just around 800 points or 2.1%, compared to over 1300 earlier.
Futures for the S&P 500 are down 2.4% and for the tech-heavy Nasdaq 100 down 2.7%.
The S&P has fallen more than 17% since its February peak, with futures dipping below 4,800 overnight to sink to levels last seen in January 2024. Accumulated losses for the Nasdaq from its peak have topped 20%, reaching lows last seen 15 months ago.
Stock markets are continuing to react to President Trump's new tariffs on US imports from around the world, with a blanket 10% tariff around the world and extra 'reciprocal' tariffs on some nations last week.
Asian markets, playing catch-up with the west after China's response on Friday included a 34% tariff on US imports, saw what some analysts called a 'bloodbath', with the Hang Seng tanking more than 13% in Hong Kong, while Japan's Nikkei and the Shanghai Composite in China both fell over 7%.
The oil price also continued its descent since President Trump's tariffs announcement last Wednesday, dipping below $60 a barrel on Monday.
Trump was not for turning on tariffs over the weekend. “Forget markets for a second — we have all the advantages,” Trump told reporters on Air Force One yesterday, adding that, “I don’t want anything to go down, but sometimes you have to take medicine to fix something.”
Other US administration officials gave contradictory statements on trade taxes, which Paul Donovan, chief economist at UBS Global Wealth Management, said was "causing investors to question the existence of a masterplan".
Attempts by the members of Trump's cabinet to justify tariff attacks on the Heard Island penguins "only emphasized the peculiarity of the tariff formula".
Trump took time from his golf weekend to post twice on social media that the falls in stocks were "on purpose".
Donovan adds: "Investors had assumed Trump’s trade taxes were a bargaining tool, as during the first term. That depends on competent policymaking to balance the benefits of trade negotiations against the damage of tariffs.
"If the competence of policymaking is questioned, markets will worry that economic damage will be lasting."
Recession fears have increased from many economists, while expectations of rate cuts from the Federal Reserve and other central banks have "soared", said market analyst David Morrison at Trade Nation.
The market now anticipates a 25 basis point rate cut from the Fed at its next meeting in a month’s time, while the CME’s FedWatch tool indicates the Fed funds rate falling to 3.00-3.25% by the end of this year, suggesting 125 bps of rate cuts from current levels.
After China said that it will impose a 34% tariff on all US imports from 10 April, and is considering other retaliatory measures, Morrison said markets will be "on tenterhooks" ahead of the European Union’s promised response.
"There could be a sharp recovery across risk assets. But there’s also the danger that margin calls on leveraged trades trigger another wave of selling. For now, expect volatility to remain elevated."
The VIX 'fear gauge' is at 48, its highest since early 2020.