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Nasdaq Tumble 3%, Dow Drops 650 Points Trump Shuts Door on Tariff Talks

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March 4 - U.S. equity markets tumbled sharply Monday after President Donald Trump declared that tariffs on imports from Canada and Mexico would take effect on Tuesday, according to a Monday news release.

The S&P 500 slid nearly 2% as the market digested the abrupt policy shift, ending a previously delayed start for the tariff implementation meant to allow further negotiations. The Dow Jones Industrial Average retreated about 2%, while the Nasdaq composite lost close to 3%, reflecting investor concerns over heightened trade tensions.

Investors, who had built momentum post-election on hopes for a more tempered trade approach, saw gains built up to more than 6% eroded to just above 1% following the move. The decision reversed much of the rally that had buoyed the market as traders anticipated a softer policy stance to bolster domestic growth.

This article first appeared on GuruFocus.