American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

S&P 500 turns negative for 2025 as Trump’s tariffs give investors jitters

by admin March 5, 2025
March 5, 2025
S&P 500 turns negative for 2025 as Trump’s tariffs give investors jitters

The S&P 500 and Dow Jones Industrial Average closed lower on Tuesday as trade tensions intensified following US President Donald Trump’s implementation of new tariffs on Canada, Mexico, and China.

Trump’s 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods, took effect at midnight.

In response, China and Canada imposed retaliatory tariffs, while Mexican President Claudia Sheinbaum vowed to follow suit, though she did not provide specifics.

The Dow tumbled for a second straight day, reflecting investor concerns over potential economic fallout.

The blue-chip index dropped 670.25 points (1.6%), extending Monday’s nearly 650-point decline.

The S&P 500 lost 1.2%, following its worst session of the year, while the Nasdaq Composite fell 0.3%.

Tuesday’s declines pushed the S&P 500 into negative territory for 2025, while the Dow is now nearly flat for the year.

At their intraday lows, the Dow had fallen more than 840 points, the S&P 500 was down 2%, and the Nasdaq had also shed over 2%, briefly flirting with correction territory—defined as a 10% drop from a recent high.

However, some investors sought opportunities in stocks that have faced heavy selling this year, including Nvidia.

Autos, retail, and consumer goods under pressure

The tariffs weighed on companies heavily reliant on North American imports.

  • Automakers: shares of General Motors and Ford fell more than 4% and 2%, respectively, as concerns mounted over supply chain disruptions.
  • Retail and consumer goods: Chipotle (CMG), which sources about half of its avocados from Mexico, lost 2%. Target (TGT) declined 3%, with its CEO warning that produce prices could rise in the coming days due to tariffs.
  • Tech and small-cap stocks: The Russell 2000 index (RUT), which tracks smaller U.S.-focused companies, also declined, reflecting broader economic worries.

Other notable stock movements included Best Buy (BBY.N), which slumped after issuing a downbeat forecast, while Walgreens (WBA.O) jumped on reports that Sycamore Partners is nearing a take-private deal for the pharmacy chain.

Elon Musk’s Tesla experienced a 4% slide due to a decline in sales figures from China. 

The markets in turmoil

Market participants had hoped for a last-minute resolution to prevent full tariff implementation, but losses accelerated on Monday after Trump confirmed the levies would proceed as planned.

Soft economic data released in recent weeks has added to investor worries, with bank and retail stocks leading Tuesday’s selloff amid fears that higher tariffs could weigh on economic growth.

With the latest drop, the S&P 500 has now fallen below its Election Day closing level in November, when Trump secured his second term.

Market watchers will be paying close attention to his address to Congress on Tuesday night, where he is expected to discuss the tariffs—a central component of his economic strategy.

The post S&P 500 turns negative for 2025 as Trump’s tariffs give investors jitters appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Hang Seng Tech index: Here’s why China’s Nasdaq 100 is surging
next post
Best Buy beats earnings, but tariffs loom: can tech retailer sustain momentum?

Related Posts

FTSE MIB index forms an extremely bullish chart...

December 6, 2024

Power of the pause: why top leaders are...

November 23, 2024

Dressed for disaster? The harsh impact of Trump’s...

April 4, 2025

Very bad news for the popular SCHD ETF

November 21, 2024

Asia markets on Friday: Hang Seng, Nifty end...

April 11, 2025

Fed chair Jerome Powell: No sign of stagflation...

May 3, 2024

Long T: AT&T Surges on Strong Earnings, Targeting...

January 28, 2025

Charter Communications stock may crash after earnings

January 31, 2025

Nikkei, KOSPI, ASX rally as tech surge propels...

December 3, 2024

Moody’s stock has it all, but has one...

September 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (2,982)
    • Investing (2,444)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved