Global Markets Reel as Trade War Jitters Spark Selloff

Wall Street drops as Nvidia, Tesla fall; Trump auto tariff uncertainty weighs

The US stock market fell sharply on Monday, with the S&P 500 dropping 1.4% and the Dow Jones Industrial Average declining 1.2%, as investors grew increasingly concerned about the potential impact of tariffs on the global economy.

The decline was led by technology and energy shares, with Nvidia and Tesla falling sharply. Nvidia, the chips and artificial intelligence company, tumbled 6.3% after its quarterly sales missed expectations, while Tesla, the electric vehicle maker, slid 3.5% after it suspended production at its Fremont, California, factory due to a shortage of components.

The market was also spooked by uncertainty surrounding the Trump administration's plans to impose tariffs on imported vehicles and auto parts. The proposed tariffs, which could take effect as early as next month, have sparked concerns about the potential impact on the global auto industry and the US economy as a whole.

The tariffs, which would be imposed on a range of auto parts, including steel and aluminum, have been met with opposition from major automakers, including General Motors, Ford and Fiat Chrysler Automobiles. The companies have warned that the tariffs could lead to higher costs and prices for consumers, as well as job losses.

The uncertainty surrounding the tariffs has weighed on the market, with investors seeking safe havens such as bonds and gold. The yield on the 10-year Treasury note fell to 2.54%, its lowest level since 2017, while gold prices rose 1.2% to $1,311.50 an ounce.

The Dow Jones Industrial Average dropped 252.6 points, or 1.2%, to 24,462.4, while the S&P 500 fell 34.6 points, or 1.4%, to 2,643.6. The Nasdaq Composite Index dropped 144.5 points, or 2.1%, to 7,145.5.