United States stock markets ended mixed on Monday (Tuesday AEDT), with the Dow Jones and S&P 500 recovering from early losses as investors braced for President Donald Trump’s upcoming tariff plans.
The Dow Jones Industrial Average gained 417.9 points, or 1%, closing at 42,001.8, while the S&P 500 rose 30.9 points, or 0.6%, to 5,611.8. However, the Nasdaq Composite dipped 23.7 points, or 0.1%, to 17,299.3.
Tech stocks struggled as investors shifted towards defensive sectors. Nvidia declined 1.2%, Microsoft lost 0.9%, and Tesla dropped 1.7%.
Market sentiment was cautious following Trump's comments on Sunday regarding "reciprocal tariffs", which he is expected to detail on Wednesday.
Trump stated the measures would apply broadly to “all countries”, countering earlier speculation that they would be more selective.
According to The Wall Street Journal, the president has recently urged his advisors to adopt a more aggressive tariff stance.
Concerns over the economic impact of the tariffs have intensified, with some fearing they could slow growth or even trigger a recession.
The S&P 500 is now nearly 9% below its February peak and hit its lowest level since September. The Nasdaq, down 14% from its December record, also reached a six-month low.
On the bond markets, yields declined, with the 10-year Treasury yield down 0.9% to 4.211% and the 2-year yield falling 0.6% to 3.889%.
