The S&P 500 dropped 0.50% on Friday, closing at 6,040.53, as reports confirmed that President Donald Trump’s latest tariffs on key U.S. trading partners would take effect on Saturday.
- The Dow Jones Industrial Average fell 337.47 points (-0.75%), closing at 44,544.66, weighed down by Chevron (NYSE:CVX).
- The Nasdaq Composite, heavily skewed toward tech stocks, slipped 0.28% to 19,627.44.
- Despite a steep 3.07% drop on Monday, the Nasdaq ended the week down 1.6%, while the S&P 500 lost 1%. The Dow, however, gained 0.3% over the week.
- Nvidia (NASDAQ:NVDA), which tumbled nearly 17% on Monday, closed the week down 16%.
January’s Volatile Market Ends in Gains
Despite turbulence, all three major indexes finished January higher:
\u2705 S&P 500: +2.7%
\u2705 Nasdaq: +1.6%
\u2705 Dow: +4.7%
Trump’s Tariffs Ignite a New Trade War
On Saturday, Trump officially announced sweeping tariffs on imports from Mexico, Canada, and China.
- Mexico and Canada are hit with a 25% import tariff, while China faces a 10% duty.
- The stated reason: Curb fentanyl imports & illegal immigration.
- Immediate retaliation:
- Mexico & Canada vowed countermeasures.
- China pledged action at the WTO and hinted at “other countermeasures.”
Market Impact: What’s Next?
The market is closely watching global trade tensions, which could fuel inflationary pressures and supply chain disruptions.
To track these risks, check out:
With trade tensions escalating, markets could see further downside risk in the coming weeks.
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