The Dow Jones Industrial Average fell for a third day on Monday as the Trump administration maintained their extraordinarily high tariff rates on key U.S. trading partners, sparking a broad market meltdown. While there was a short-lived rally after market open on speculation the White House would pause the tariffs for 90-days, the sell-off resumed after the federal government dismissed those claims.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): -0.23% or -11.90 points to 5,062.18

Dow Jones Industrial Average (DIA  ): -0.91% or -349.45 points to 37,965.41

Nasdaq Composite Index (QQQ  ): +0.10% or +15.48 points to 15,603.26

The Dow fell over 1,700 points before regaining some losses in Monday's volatile session; the index posted back-to-back 1,500 point losses for the first time ever last week. Meanwhile, the S&P 500 Index climbed out of a bear market at session close, but is still about 18% off its February high. Outperforming the market, the tech-heavy Nasdaq Composite rose slightly as some investor bought-the-dip in mega-cap tech stocks like Nvidia (NVDA  ).

"Equity volatility is likely to remain elevated in the coming weeks, driven by uncertainty around President Trump's tariff strategy and potential retaliation by other countries," wrote David Lefkowitz, head of U.S. equities at UBS, in a note on Monday. "Markets are not yet fully pricing a U.S. recession, suggesting additional near-term downside risk."

Trump on Monday threatened further tariffs on China, starting on Truth Social: "If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 6th, 2025, the United States will impose additional tariffs on China of 50%, effective April 9th. Additionally, all talks with China concerning their requested meetings with us will be terminated."

Shares of Apple (AAPL  ) sank lower following the additional China tariff threat, as the tech giant is one of the most exposed companies to the developing trade war. Monday's sell-off brings Apple's three-day losses to about 19%, wiping out about $638 billion of its market cap.

The White House said that at least 50 nations have reach out to begin negotiations.

Canada on Monday field a dispute with the World Trade Organization (WTO) over Trump's 25% tariffs on cars and auto parts imported from Canada in the U.S, claiming that the measures violate the nation's obligations under the General Agreement on Tariffs and Trade (GATT) 1994.

Dispute consultations by the WTO will give both parties an opportunity to discuss for 60 days without litigation. If a resolution fails in that timeline, the complainant may request adjudication, according to the WTO.

Tariff Impact News:

Restaurant Stocks declined Monday as analysts expect inflation from Trump's tariffs to impact consumer discretionary spending. Starbucks (SBUX  ) was notably in focus as the coffee-chain is expected to face higher coffee costs as the company works to turn around its business in the United States.

"We view the direct cost impact of tariffs on restaurants as manageable, with a focus on select commodity costs, but see the bigger risk as incremental pressure on consumer spending and industry demand," wrote UBS analyst Dennis Geiger in a note to clients on Monday.

Vehicle Prices in the United States are expected to soar as a result of Trump's tariffs, new analysis from Cox Automotive showed Monday. The firm predicts that prices will increase by thousands of dollars for both imported and domestic vehicles due to the 25% duty on foreign vehicles and the upcoming 25% tariff on auto parts.

"We expect to see declining discounting and then accelerated price increases as the tariffs are passed through and supply tightens, leading to price increases on all types of most new vehicles," said Jonation Smoke, chief economist at Cox Automotive, in a statement. "Over the longer term, we expect production sales to fall, newly used prices to increase, and some models to be eliminated."