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US stocks slumped after President Donald Trump ramped up his newest tariffs, while investors continued to punish companies that could be losers in the artificial-intelligence revolution.<\/p>\n
The S&P 500 fell 1 per cent after Trump said on Saturday that he would place temporary 15 per cent tariffs on other countries. That\u2019s up from the 10 per cent rate he announced Friday following a Supreme Court ruling that struck down his sweeping \u201creciprocal\u201d taxes on imports from around the world.<\/p>\n
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Wall Street has started the week on the back foot. AP<\/p>\n
The Dow Jones dropped 821 points, or 1.7 per cent, and the Nasdaq composite sank 1.1 per cent.<\/p>\n
The Australian sharemarket is set to edge up, with futures pointing to a gain of 27 points, or 0.3 per cent, at the open. The ASX lost 0.6 per cent<\/a> on Monday. The Australian dollar was weaker at US70.52\u00a2 at 9.04am AEDT.<\/p>\n Related Article Trump\u2019s quick move toward more aggressive tariffs shows how much uncertainty still hangs over the global economy, even after the Supreme Court said the president lacked the legal authority to institute his sweeping \u201creciprocal\u201d tariffs.<\/p>\n Beyond a 15 per cent tariff that could last for up to 150 days, unless Congress extends it further, Trump is moving forward on other avenues to place more permanent tariffs on countries and industries. That has trading partners uneasy. South Korea\u2019s trade minister, Kim Jung-kwan, said Monday that uncertainty may worsen if the Trump administration continues imposing new tariffs under alternative laws.<\/p>\n To be sure, Monday\u2019s moves for markets weren\u2019t close to as bad as the panic that swept the world in April, when Trump initially announced his \u201cLiberation Day\u201d tariffs. US stocks were modestly higher for a brief moment during the morning.<\/p>\n The US dollar\u2019s value edged lower against other currencies. Bitcoin briefly fell below $64,000 but remained above its low point reached earlier this month. Gold continued to rise thanks to its reputation as something safer to own during uncertain times.<\/p>\n Investors may be sensing it will take a long time, as well as more court battles, before more clarity comes about how global trade will look.<\/p>\n \u201cStocks got a boost Friday from the Supreme Court\u2019s tariff ruling, but it quickly became clear that the decision was simply going to open a new chapter in the trade saga, not end it,\u201d according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.<\/p>\n On Wall Street, big losses hit companies under suspicion of getting undercut by AI-powered rivals. Investors have been sharply and suddenly punishing stocks of such companies recently.<\/p>\n CrowdStrike fell 9.8 per cent to widen its loss for the young year so far to 25.3 per cent. A new tool from Anthropic that scans codebases for security vulnerabilities and suggests targeted software patches for human review has been hitting stocks across the cybersecurity industry.<\/p>\n AppLovin sank 9.1 per cent and took its loss for the year to date to 43.5 per cent. It\u2019s among the software companies hurt by worries that AI competition will steal customers and fundamentally reset their industries.<\/p>\n Companies that have lent money to software companies whose revenues may be under threat also continued falling, and Blue Owl Capital fell 3.4 per cent to bring its loss for the year so far to 30.1 per cent.<\/p>\n More big moves may still be ahead for Wall Street this week, particularly with a profit report from Nvidia coming on Wednesday.<\/p>\n Worries are rising that companies like Alphabet and Amazon may be spending so much on Nvidia\u2019s chips that they\u2019ll never be able to recoup their investments through higher productivity and future profits.<\/p>\n Elsewhere on Wall Street, stocks of airlines fell after heavy snow and high winds canceled thousands of flights across the busy Northeast.<\/p>\n United Airlines lost 5.2 per cent, American Airlines fell 4.9 per cent and Delta Air Lines sank 3.7 per cent.<\/p>\n Novo Nordisk\u2019s stock that trades in the United States tumbled 16.4 per cent after the Danish drugmaker said a trial for its CagriSema drug showed people lost a smaller percentage of their weight after 84 weeks than with a similar one made by rival Eli Lilly. Eli Lilly rose 4.9 per cent.<\/p>\n All told, the S&P 500 fell 71.76 points to 6,837.75. The Dow Jones Industrial Average dropped 821.91 to 48,804.06, and the Nasdaq composite sank 258.80 to 22,627.27.<\/p>\n Related Article In stock markets abroad, indexes mostly fell in Europe. They had risen on Friday after the Supreme Court\u2019s ruling.<\/p>\n In Asia, where markets got their first chance to react to the court\u2019s ruling, Hong Kong\u2019s Hang Seng jumped 2.5 per cent, while South Korea\u2019s Kospi rose a more modest 0.6 per cent. Markets in Japan and mainland China were closed for holidays.<\/p>\n In the bond market, the yield on the 10-year Treasury fell to 4.03 per cent from 4.08 per cent late Friday.<\/p>\n A top official at the Federal Reserve said Monday that it\u2019s a \u201ccoin flip\u201d on whether the Fed will cut its main interest rate at its next meeting in March or stand pat again.<\/p>\n The comments from Fed. Gov. Christopher Waller were a notable shift from January, when he was one of the two Fed governors to dissent against the central bank\u2019s decision to hold its key rate steady after three rate cuts at the end of last year.<\/p>\n Lower rates would give the economy a boost, and Trump has been lobbying angrily for them. But they also could risk worsening inflation.<\/p>\n AP<\/p>\n The Market Recap newsletter is a wrap of the day\u2019s trading. Get it each weekday afternoon<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n![\"Australian](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/02\/1771889953_808_c295dcfe6442bcb58fdd96c552568b9d4a24e8a3de4ff22fa0ec77c1e2b6b93f.jpeg\")
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