The stock market began the first day of the trading week down again as President Donald Trump‘s sweeping tariff policies have caused worldwide markets to panic.
On Monday morning, the Dow Jones Industrial Average opened down more than 1,200 points, roughly 3%, the S&P 500 opened down 3.4%, and the Nasdaq Composite was down roughly 4%.
As trading continued, the Dow continued to fall 1,600 points from Friday’s close but rebounded slightly to down only 1,000 points for the day. The S&P 500 is down 11% in the past week, as its drop since its Wednesday peak approaches the range of a bear market. Bear market territory is defined by an index dropping 20% from its recent peak.
The Dow Jones has also been down 10% over the past week.
Stocks rebounded roughly an hour after the opening bell following erroneous social media reports that the White House was considering a 90-day pause on tariffs. The reports came from a clip of National Economic Council Director Kevin Hassett on Fox News’s Fox & Friends, in which he was asked whether the administration would consider a pause on the tariffs.
“I think the president is gonna decide what the president is gonna decide,” Hassett said before discussing countries seeking negotiations with the president.
The White House’s rapid response X account declared the reports “fake news,” and markets tanked again shortly after.
Several major U.S. companies also had a rough start Monday. Nike started down roughly 5%, Apple fell 5%, and Amazon was down 3%.
Trump unveiled the tariff policy last Wednesday, putting a minimum 10% tariff on most of the country’s trading partners. The 10% tariff rates began Saturday, while higher reciprocal tariff rates for select other countries are set to start Wednesday. The stock market reacted negatively during trading hours Thursday and Friday, with the Dow Jones falling 7.41% last week and experts saying $6 trillion of wealth was erased.
TRUMP SIGNALS SWEEPING TARIFFS HERE TO STAY AS FUTURES MARKET PLUNGES
Markets worldwide also tanked on the opening trading day of the week. Japan’s Nikkei 225 fell 7.8%, the Stoxx Europe 600 fell 5%, the Korea Composite Stock Price Index fell nearly 5.6%, and Germany’s DAX index fell more than 4%.
Analysts feared a grim day of trading on Monday. CNBC’s Jim Cramer warned over the weekend that stocks could tumble similarly to “Black Monday” in 1987, when the Dow Jones dropped more than 22% in one day.
Ahead of the New York Stock Exchange’s opening bell at 9:30 a.m., Trump teased talks with trade partners about the tariffs in a post on Truth Social. He specifically hinted that meetings with Japan, a key trade partner, would be forthcoming.
“Countries from all over the World are talking to us. Tough but fair parameters are being set. Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate! They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs. Likewise Agriculture, and many other “things.” It all has to change, but especially with CHINA!!!” Trump posted.
Trump administration officials have given mixed signals on whether the tariffs are permanent or could be negotiated. The president does not seem keen on moving away from his tariff plan, doubling down on Air Force One on Sunday and taking aim at China for retaliatory tariffs in a Truth Social post Monday morning.
WHITE HOUSE ADVISERS SPLIT ON DEFENDING TRUMP TARIFFS AS PERMANENT OR A NEGOTIATING TACTIC
“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place,” Trump said Monday. “This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate.”
“They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!” he added.
