Stocks Fall For Third Straight Day Amid Trump Tariff Uncertainty

For the third consecutive day of trading following President Donald Trump’s tariff rollout, U.S. stock indexes dipped as Wall Street anxiously awaits the result of the president’s aggressive move.

The Dow Jones ended Monday down 349 points (0.9%) while the S&P 500 dropped 0.2%, which was a big recovery from earlier in the day when it was down 4.7% at its low, CNBC reported. The Nasdaq Composite was down 3% earlier on Monday but ended the day up 0.1% thanks to investors going in on tech stocks, such as Nvidia and Palantir.

Trading was a rollercoaster ride early in the day as stocks suddenly skyrocketed following a false report that spread on social media claiming that President Donald Trump was considering a 90-day tariff reprieve. The Dow Jones saw a record swing, dropping by more than 1,700 points in the morning before going up 2,595 points. The S&P 500 swung from down 4.7% to up 3.4% during morning trading.

After the dramatic swing on Wall Street Monday morning, investors became uneasy again when Trump threatened to hit China with an additional 50% tariff after the communist country levied a 34% retaliatory tariff on the United States on Friday. Trump gave China a deadline of Tuesday “to withdraw” its retaliatory tariff on the United States before he moves forward with more tariffs. If the additional 50% tariff goes into effect, it would be added onto the 34% tariff imposed by Trump last week, which was put in place on top of a 20% levy the president imposed on China shortly after taking office.

Apple shares fell by over 5% in response to increased trade tensions with China and ended the day down 3.7%. Tesla was also down 2.6%, and Amazon climbed 2.5%.

While Wall Street remains wary of the impending global trade war, many countries appear willing to come to the negotiating table to avoid Trump’s hefty tariffs. On Monday, the European Union said it offered the United States “zero-for-zero tariffs for industrial goods,” and Trump held “a very constructive phone discussion” with Japanese Prime Minister Shigeru Ishiba.

Following Trump’s call with Ishiba, Treasury Secretary Scott Bessent said he will meet with Japanese leaders to seek out a new trade agreement. Trump also ordered a new review of the possible sale of U.S. Steel 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.”

On Monday afternoon, Trump met with Israeli Prime Minister Benjamin Netanyahu at the White House, where Netanyahu pledged to “eliminate the trade deficit with the United States … very quickly.” The meeting took place after Trump hit Israel with a 17% tariff.

According to Treasury Secretary Bessent, “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.