Dow Drops 649 Points as Trump Implements Tariffs

U.S. stocks fell sharply on Monday, erasing significant gains since President Trump's election, following his announcement that tariffs on imports from Canada and Mexico would take effect imminently. The S&P 500 dropped 1.8%, while the Dow Jones Industrial Average fell 649 points, or 1.5%, and the Nasdaq composite slumped 2.6%. This decline was attributed to investor disappointment as hopes for a softer trade policy dissipated, coupled with concerning economic indicators including a contraction in manufacturing new orders. The market had previously rallied on expectations of pro-growth policies from Trump, but recent economic data has raised fears of a slowdown. Analysts noted that the tariffs could lead to increased costs and diminished consumer confidence, as shown by a drop in the ISM new orders index. Overall, the market's reaction reflects growing unease about the potential impact of the tariffs on the U.S. economy and trade relations.