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Key Takeaways

• The S&P 500 plunged 1.8% on Monday, March 3, 2025, posting its steepest drop so far this year as President Trump confirmed that new tariffs will take effect on Tuesday.

• Nvidia and other chip stocks tumbled amid concerns about policies regarding tariffs and chip export curbs.

• Shares of wood products provider Weyerhaeuser gained after Trump signed an executive order aimed at promoting domestic timber and lumber production.

Major U.S. equities indexes tumbled Monday amid concerns about U.S. trade policy as President Trump said tariffs against Mexico and Canada would take effect Tuesday as planned.

The S&P 500 fell 1.8%, marking the steepest daily drop for the benchmark index so far this year. The Dow slid 1.5%, while the Nasdaq plummeted 2.6%, dragged down by underperformance in the technology sector, particularly among AI stock.

Shares of server maker Super Micro Computer (SMCI) plunged 13% Monday, leading losses on the S&P 500. Although the volatile stock posted gains in the middle of last week after Supermicro met a deadline for filing its delayed annual report, Mizuho analysts warned of increasing competition and declining market share in the AI server market.

Meanwhile, Nvidia (NVDA) shares sank 8.7% to lead losses on the Dow and Nasdaq, extending losses last week as concerns intensified about the sustainability of AI spending and the possible impact of tariffs and chip export curbs.

APA Corp. (APA) shares lost 8.7%, broadening a downturn for the stock that began last week after the oil and gas exploration firm missed fourth-quarter profit expectations. Although APA enjoyed a production boost in the Permian Basin following last year's acquisition of competitor Callon Petroleum, declining commodity prices and increasing expenses weighed on the company's performance.

The top performance among S&P 500 constituents Monday came from shares of insurance company Erie Indemnity (ERIE), which advanced 5.1%. Monday's push higher added to gains posted last week after the insurer reported better-than-expected earnings for the fourth quarter, boosted by increased management fee revenue from policy issuance and renewal services.

Shares of real estate investment trust (REIT) Weyerhaeuser (WY), which is among the world's largest private owners of timberlands, jumped 4.3% after President Trump signed an executive order over the weekend aimed at promoting domestic timber and lumber production.

Hershey (HSY) shares added 3.4% on Monday, clawing back losses posted last week as the possibility of cuts to the Supplemental Nutrition Assistance Program (SNAP) weighed on consumer staples stocks.

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