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Stock futures sank in the U.S. on Monday after President Donald Trump announced new tariffs on Canada, Mexico, and China that led to immediate retaliation from affected countries. Futures on the Dow Jones Industrial Average plunged 600 points, or 1.3%, and S&P 500 and Nasdaq 100 futures dropped 1.6% and 1.9%, respectively.
Nvidia (NVDA, Financial) and Tesla (TSLA, Financial), among major stocks, extended losses last week, with Nvidia falling another 3.7% and Tesla 3.2% in premarket trading. Nvidia would break below its 200-day moving average, sparking investor concerns for a continuation of weakness in AI stocks after the selloff.
West Texas Intermediate crude futures rose in the commodities market to $74.45 per barrel, while the 10-year Treasury yield fell to 4.51%.
The 10 percent tariff on China, which is set to kick in Tuesday, and the 25 percent on Canadian and Mexican imports, both attributed to Trump's executive order, will target imports for steel pipes, wires, and razor blades. On Friday, Canada responded with 25 percent tariffs on $107 billion worth of U.S. goods, including electric vehicles. Mexico and China vowed countermeasures.
And as Wall Street pays attention to a very heavy economic calendar featuring key jobs data and earnings from Amazon (AMZN, Financial), Alphabet (GOOG, Financial), Pfizer (PFE, Financial), and Eli Lilly (LLY, Financial) among others this week. Global trade tensions keep the market volatility elevated.
This article first appeared on GuruFocus.