Wall Street rout continues: S&P 500, Dow Jones, Nasdaq sharply lower over Trump tariffs fallout

US stock indices were sharply lower on Monday, as investors rushed to government bonds on economic worries over the fallout of President Donald Trump's sweeping tariffs on US trading partners.

Trump on Monday threatened to raise tariffs further against China after the world's second-largest economy retaliated last week with its own set of tariffs on US products.

As of 1:05 pm Eastern time, the S&P 500 was down 1.7%, the Dow Jones Industrial Average was down 2.2%, and the Nasdaq Composite was 1.4% lower.

At 10:39 a.m. the Dow Jones Industrial Average fell 996.97 points, or 2.60%, to 37,317.89, the S&P 500 lost 115.21 points, or 2.27%, to 4,958.87, and the Nasdaq Composite lost 320.20 points, or 2.06%, to 15,266.70.

At 09:31 a.m. the Dow Jones Industrial Average fell 1,212.98 points, or 3.17%, to 37,101.88, the S&P 500 lost 181.37 points, or 3.57%, to 4,892.71, and the Nasdaq Composite lost 623.23 points, or 4.00%, to 14,964.56.

Trump Tariffs: Global Market Rout

Across the global equity markets also, selloff continued on Monday on worries that a trade war induced by President Trump's tariffs will spark a global economic recession and raise inflation rates.

On Wednesday, Trump had announced wide-ranging tariffs on US trading partners that were far more impactful than markets had expected.

On Sunday Trump told reporters that he does not want markets to fall but he wasn’t concerned about a sell-off, saying “sometimes you have to take medicine to fix something.”

President Trump’s tariff policy are aimed at boosting the US manufacturing and increasing number of jobs by reducing dependence on foreign imports.

JPMorgan CEO Jamie Dimon said on Monday: “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.”

“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he wrote in his annual letter to shareholders.

The US stocks briefly turned positive following an erroneous report that the White House was considering a 90-day tariff pause.

Meanwhile, White House officials quickly denied the report, posting US economic advisor Kevin Hassett’s interview on Fox News that had been misquoted.

US Treasury yields rebounded on Monday on rising optimism that some countries may negotiate deals with the US to avoid trade tariffs.

The benchmark 10-year note yields were up 12.8 basis points at 4.119%. The two-year yields rose 2.9 basis points to 3.699%.

The US dollar rose against its rivals, moving away from a six-month low touched last week.

Bullion

Gold prices edged lower on Monday as investors opted for the US dollar as a safe haven after sweeping US tariffs.

Spot gold was down 0.2% at $3,030.69 an ounce as of 09:01 AM ET (1301 GMT), after hitting a more than three-week low of $2,971.09 earlier in the session. US gold futures rose 0.5% to $3,048.90.

Spot silver rose 2.2% to $30.19 an ounce. Spot platinum edged 0.2% higher to $928.19, while palladium gained 1.5% to $928.19.