Stocks reversed earlier losses on Monday, pulling S&P 500 Index out of correction territory, as market participants await President Donald Trump's latest tariff plans due out later this week. The broader market index is now about 9% below its February record. The Dow Jones Industrial Average soared over 400 points on Monday, while the Nasdaq Composite slipped lower and is 14% below its December high.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Market sentiment is widely impacted by the Trump administration's planned "Liberation Day," on Wednesday, when the president is expected to roll out new tariffs, including a 25% duty on all foreign manufactured cars, and announce his plans for reciprocal tariffs on countries that tax U.S. imports.
"You'd start with all countries," Trump told reporters on Air Force One late Sunday regarding Wednesday's plans. "So let's see what happens. There are many countries."
Goldman Sachs economists lead by Jan Hatzius, head of global investment research at the bank, expect the White House's plans would raise inflation and unemployment in the U.S. and could stall economic growth.
The firm now expects that core inflation, which excludes food and energy prices, to reach 3.5% in 2025, a 0.5 percentage point increase from its previous forecast. Moreover, Goldman raised its chance of recession forecast in the next 12 months to 35% from its prior 20%.
Monday also marks the final day of the month and quarter, which has been broadly volatile in response to the Trump administration's trade policies. The S&P 500 fell 5.8% for the month -- its biggest monthly slide since December 2022 -- and 4.6% for the quarter. The tech-heavy Nasdaq also dropped over 8% for the month and 10.4% for the quarter, while the Dow fell about 4% and 1%, respectively.
In the News:
Tesla
Tesla shares have fallen 45% since their Dec. 17 peak, which was spurred by market optimism following Trump's election win in November. According to Bloomberg's Billionaires Index, Musk's own wealth has fallen by more than $100 billion so far this year.
"What they're trying to do is put massive pressure on me, and Tesla I guess, to you know, I don't know, stop doing this," Musk said at a town hall event in Wisconsin, quoted by Bloomberg. "My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it's a big deal."
"Long term I think Tesla stock's going to do fine, so maybe it's a buying opportunity," Musk added.
