{"id":48848,"date":"2025-02-03T22:28:39","date_gmt":"2025-02-03T22:28:39","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/"},"modified":"2025-02-03T22:28:39","modified_gmt":"2025-02-03T22:28:39","slug":"market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/","title":{"rendered":"Market Recap: Stocks Tumble as Trump&#8217;s Tariffs Shake Wall Street"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Major_Indexes_Plunge_Amid_Trade_War_Fears\" >Major Indexes Plunge Amid Trade War Fears<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Tech_Giants_and_Automakers_Bear_the_Brunt\" >Tech Giants and Automakers Bear the Brunt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Cryptocurrency_Market_Feels_the_Ripple_Effect\" >Cryptocurrency Market Feels the Ripple Effect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Upcoming_Market_Events_to_Watch\" >Upcoming Market Events to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Expert_Analysis_and_Market_Outlook\" >Expert Analysis and Market Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-tumble-as-trumps-tariffs-shake-wall-street\/48848\/#Looking_Ahead_Trade_Negotiations_and_Market_Sentiment\" >Looking Ahead: Trade Negotiations and Market Sentiment<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Plunge_Amid_Trade_War_Fears\"><\/span>Major Indexes Plunge Amid Trade War Fears<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Monday, February 3, 2025, U.S. stock markets experienced a significant downturn as investors reacted to President Donald Trump&#8217;s weekend announcement of new tariffs on Canada, Mexico, and China. The move has reignited fears of a full-blown trade war and its potential impact on the global economy.<\/p>\n<p>As of the latest trading session, the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average fell 0.3%<\/b>, while the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> dropped 0.8%<\/b>, and the <b>tech-heavy Nasdaq Composite declined 1.2%<\/b>. These figures represent a slight recovery from the day&#8217;s earlier lows, where the indexes were down 1.3%, 1.5%, and 1.7%, respectively.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Giants_and_Automakers_Bear_the_Brunt\"><\/span>Tech Giants and Automakers Bear the Brunt<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The so-called &#8220;Magnificent Seven&#8221; stocks, which have been driving much of the market&#8217;s gains, faced significant pressure. <b>Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>)<\/b> saw its shares decline by 3%, while <b>Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>)<\/b> also dropped 3%. These companies, along with <b>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>)<\/b>, which fell 5%, are particularly vulnerable due to their high exposure to the Chinese market.<\/p>\n<p>The automotive sector was hit hard, with <b>Ford (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=F\">F<\/a>)<\/b> down 2% and <b>General Motors (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GM\">GM<\/a>)<\/b> falling 3%. The industry&#8217;s heavy reliance on Canadian and Mexican imports makes it especially susceptible to the new tariffs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cryptocurrency_Market_Feels_the_Ripple_Effect\"><\/span>Cryptocurrency Market Feels the Ripple Effect<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The cryptocurrency market wasn&#8217;t spared from the turmoil. <b>Bitcoin<\/b> tumbled to around $96,000, down from last week&#8217;s highs of $106,000. Crypto-related stocks such as <b>Coinbase (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=COIN\">COIN<\/a>)<\/b> and <b>MicroStrategy (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MSTR\">MSTR<\/a>)<\/b> experienced volatility, with MicroStrategy managing to turn an 8% loss into a 4% gain by the end of the trading day.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events_to_Watch\"><\/span>Upcoming Market Events to Watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are now turning their attention to several key events that could further influence market direction:<\/p>\n<p>1. Earnings reports from tech giants <b>Alphabet (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GOOGL\">GOOGL<\/a>)<\/b>, <b>Advanced Micro Devices (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMD\">AMD<\/a>)<\/b>, and <b>PayPal (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PYPL\">PYPL<\/a>)<\/b> are scheduled for this week.<br \/>2. The January manufacturing activity report is expected later today.<br \/>3. The highly anticipated January non-farm payrolls report is due on Friday.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Expert_Analysis_and_Market_Outlook\"><\/span>Expert Analysis and Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market analysts are cautioning investors about the potential long-term impacts of the new tariffs. Goldman Sachs noted that if the tariffs are sustained, it could reduce their S&#038;P 500 earnings per share (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=EPS\">EPS<\/a>) growth forecast by approximately 2-3%.<\/p>\n<p>Stephen Wisnefski, Executive Editor of News at Investopedia, commented, &#8220;Stocks are coming off a volatile week of trading fueled by corporate results, the Federal Reserve&#8217;s latest decision on interest rates, and the revelation that Chinese startup DeepSeek had launched a highly effective, low-cost AI model.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead_Trade_Negotiations_and_Market_Sentiment\"><\/span>Looking Ahead: Trade Negotiations and Market Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>President Trump has stated that he will engage in talks with the leaders of Canada and Mexico, although expectations for a change in policy remain low. The market will be closely monitoring these discussions and any potential retaliatory measures from the affected countries.<\/p>\n<p>As the situation develops, investors are advised to stay alert to rapid market changes and potential opportunities arising from the current volatility. The coming days will be crucial in determining whether this is a short-term correction or the beginning of a more prolonged market downturn.<\/p>\n<p>In conclusion, the stock market&#8217;s reaction to the new tariffs underscores the delicate balance of global trade relations and their impact on investor sentiment. As always, diversification and a long-term investment strategy remain key to navigating these turbulent market conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Plunge Amid Trade War Fears On Monday, February 3, 2025, U.S. stock markets experienced a significant downturn as 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