FX.co ★ Dow Tumbles For 3rd Day

On Monday, US stocks ended mostly lower as investors responded to President Donald Trump's intensifying trade conflict with China, which included a threat to enforce an additional 50% tariff if Beijing did not retreat from its countermeasures. The S&P 500 declined by 0.7%, and the Dow Jones Industrial Average fell by 342 points during a session characterized by unprecedented intraday fluctuations. Conversely, the Nasdaq 100 edged up by 0.2% after initially plummeting more than 3%. Volatility surged across various asset classes, affecting equities, Treasuries, and commodities as markets absorbed mixed signals, including speculation of a potential 90-day tariff hiatus—a claim swiftly refuted by the White House. The domestic auto sector faced pressure amidst growing worries over upcoming tariffs on automotive components, with companies like General Motors (-1.4%), Stellantis (-7.8%), Ford (-3.6%), and Tesla (-2.5%) experiencing declines. Apple's market capitalization has decreased by $640 billion over three days, with its stock price dropping 20%, largely due to its heavy reliance on China, where tariffs have risen to 54%.