US stocks slumped Monday after President Trump ramped up his newest tariffs, while investors continued to punish companies that could be losers in the artificial-intelligence revolution.
- The S&P 500 sank 71.76 points, or 1% to 6,837.75.
- The Dow Jones Industrial Average dropped 821.91 points, or 1.7%, to 48,804.06.
- The Nasdaq composite fell 258.80 points, or 1.1%, to 22,627.27.
Cybersecurity and software stocks fell to some of the market's sharpest losses on worries AI-powered rivals could undercut their profits, the
AP reports. The US dollar's value edged lower against other currencies, while gold continued to rise as Trump's latest tariff move raised uncertainty. Bitcoin briefly fell below $64,000 but remained above its low point reached earlier this month.
Trump said on Saturday that he would place temporary 15% tariffs on other countries. That's up from the 10% rate he had announced Friday in response to a Supreme Court ruling that struck down his sweeping "reciprocal" taxes on imports from around the world. Beyond a 15% tariff that could last for up to 150 days, unless Congress extends it further, Trump is moving forward on other avenues to place more permanent tariffs on countries and industries. That has trading partners worldwide uneasy. South Korea's trade minister, Kim Jung-kwan, said Monday that uncertainty may worsen if the Trump administration continues imposing new tariffs under alternative laws.
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Investors may be sensing it will take a long time, as well as more court battles, before more clarity comes about how global trade will look. "Stocks got a boost Friday from the Supreme Court's tariff ruling, but it quickly became clear that the decision was simply going to open a new chapter in the trade saga, not end it," according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.
On Wall Street, big losses hit companies under suspicion of getting undercut by AI-powered rivals. Investors have been sharply and suddenly punishing stocks of such companies recently. CrowdStrike fell 9.8% to widen its loss for the year so far to 25.3%. A new tool from Antropic that scans codebases for security vulnerabilities and suggests targeted software patches for human review has been hitting stocks across the cybersecurity industry. AppLovin sank 9.1% and took its loss for the year to date to 43.5%. It's among the software companies hurt by worries that AI competition will steal customers and fundamentally reset their industries.
Elsewhere on Wall Street, stocks of airlines fell after heavy snow and high winds canceled thousands of flights across the busy Northeast. United Airlines lost 4.8%, American Airlines fell 5.2% and Delta Air Lines sank 3.7%. Novo Nordisk's stock that trades in the United States tumbled 16.4% after the Danish drugmaker said a trial for its CagriSema drug showed people lost a smaller percentage of their weight than with a similar one made by rival Eli Lilly. Eli Lilly rose 4.9%.
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