U.S. markets experienced another volatile trading session as investors grappled with the implications of President Trump’s latest tariff decisions. The day ended with the Dow Jones Industrial Average falling 349 points (0.9%), while the S&P 500 showed resilience by limiting its decline to 0.2% after recovering from a dramatic 4.7% drop earlier in the day. The tech-heavy Nasdaq Composite managed to close slightly higher, up 0.1%, boosted by strong performances from companies like Nvidia and Palantir.
The morning session witnessed unprecedented market swings triggered by unverified social media reports suggesting President Trump might consider a 90-day pause on tariffs.
This speculation sent the Dow Jones on a wild ride, plunging more than 1,700 points before surging 2,595 points higher. Similarly, the S&P 500 experienced a remarkable swing, moving from a 4.7% loss to a 3.4% gain during morning trading. Market sentiment soured again when President Trump escalated tensions by threatening China with an additional 50% tariff, following Beijing’s 34% retaliatory tariff imposed on Friday. The president set a Tuesday deadline for China to withdraw its countermeasures.
If implemented, this new tariff would stack on top of the existing 34% tariff from last week and the 20% levy established early in Trump’s presidency. The trade tensions particularly affected certain major stocks, with Apple shares declining 3.7% after dropping more than 5% during the session. Tesla experienced a 2.6% decrease, while Amazon managed to gain 2.5%. Despite Wall Street’s concerns about an impending global trade war, several nations have shown willingness to negotiate. The European Union extended an offer of “zero-for-zero tariffs for industrial goods” to the United States, while President Trump engaged in promising discussions with Japanese Prime Minister Shigeru Ishiba.
Following the call with Ishiba, Treasury Secretary Scott Bessent announced plans to meet Japanese officials to discuss a new trade agreement. The administration also initiated a review of a potential U.S. Steel sale to Japan’s Nippon Steel. “Japan remains among America’s closest allies, and I look forward to our upcoming productive engagement regarding tariffs, non-tariff trade barriers, currency issues, and government subsidies,” Bessent said. “I appreciate the Japanese government’s outreach and measured approach to this process.”
Later that day, Israeli Prime Minister Benjamin Netanyahu met with Trump at the White House, where Netanyahu committed to “eliminate the trade deficit with the United States … very quickly.” This meeting followed Trump’s implementation of a 17% tariff on Israel. Treasury Secretary Bessent noted, “Over 50 countries have responded both openly and positively to @POTUS @realDonaldTrump’s historic action to create a fairer, more prosperous system of global trade.” “We look forward to meaningful negotiations with them over the coming weeks,” Bessent added.
